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You can't judge affordability by how many loans ARE NOT in arrears.

I never said it was. For some it will be a big deal. For others it won't. Cheers Rogue

So what? You could say the same thing about the USA. Still plenty of people unaffected. There are still lots of Americans going on holidays, shopping, playing bingo. Doesn't mean a recession is not happening.

Hey Land I don't consider myself a D&G'r just because i happen to weigh up the market and form and opinion about the direction it's heading. I don't think the sky is going to fall in. I simply believe that property prices are primed for a substantial fall. Nothing new. Nothing that hasn't...

People aren't going to pay more than they can afford. If rent becomes too unaffordable for one person they will likely share with others. And in my experience from my teen years of sharing a house with others... a house rented by a couple rents for the same as a house with 6 students living in...

Yes. Did i not give co-habiting as an example of what could happen if demand for housing exceeded supply? You mentioned that we are not UK/USA/Spain, but we are experiencing exactly the kind of economic conditions that the UK was 1 year ago, so in that sense you fail to acknowledge the signs.

Where on this site exactly? I prefer to base my investment decisions on what i think is going to happen in the future. If i invested in Perth in 2006 based on what was happening at the time (mining boom and all :)) I would have lost money by now. If i had been old enough and had enough money in...

It's a symptom that prices are too high. That's what UK was saying before they were hit hard by the fallout from the US economy. You complete failure to acknowledge our ties to the global economy is not a smart strategy. You have all your eggs tied in the basket of high migration saving...

Where are you even getting this figure from? I'm not being silly Shadow. As i said above - the result can be many things: more people staying at home, more peope co-habiting, more emigration and more Govt efforts to release land an increase housing supply/restrict migration. In the Uk they...

Yes i guess that is why there is a housing affordability CRISIS and all. Shadow, sorry, but i was talking about the natural rate of increase. I am aware that our unusually high migration levels are causing a larger than average population increase. I've said that in previous posts. Um. No...

No. That's the best way i can represent an increase in listings (via lower sale volumes). I've yet to find a source for volume of sales listings information other than personal observations/research on the number of listings on realestate.com/domain and a few articles i've read around the place...

No boomtown. http://qld.hia.com.au/documents/New%20Home%20Sales%20Jul%2008.pdf

No boomtown. I'm talking about Australia.

Don't be too quick there Natedog. Population increase is plodding along at historical levels (less than the global rate of natural increase actually). Birth rate even dropped for a long while there and it's just catching up. Divorce rate has remained stable for the last 2-3 decades and there...

I totally agree with you there Natedog. The emotional aspect of home ownership is one of the main reasons that so many people have been buying homes they can't afford. If it was merely a financial decision based on yield and/or capital gains, then many less properties would have been sold for...

Yes, there is a correct level of affordability for the average earning population, which would indicate a correct price range to keep houses within that realm of affordability. Yes. Assuming that those 1 million could afford those booming prices, but you would have a whole other generation of...

Hi Jingo, To answer your questions: I am talking average income earner. You see Jingo, that is how we calculate averages.... we factor in those many people who earn less than average and those many people who earn more.... and that's what gives us the average wage. Of course, not everyone...

Hi Devo I think opinions differ on this. My personal opinion is that a crash is a return to historical growth levels and affordability. For example, property grows 7% pa (or less in real terms) and has done this for about 30 years or so. An average house is historically about 3-4x...