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True - I've actually learned a lot.

I had much the same experience when I came to SS for the first time. It was educational though - I had fun - but didn't swing anybody.

You have to cut and paste the quote tags to the bits you want to quote separately ... like this .... :) :) :) :)

Yes - you pay for it in the interest rate. There is always somebody on the other side of a transaction so there is very rarely a free lunch. The best targets for a free lunch is the government - they steal it from the wider public and give it to you! Individuals and companies though are...

Don't forget the guns and other weapons ...

I didn't vote. Just voted now. Strangely enough the number for that one moved to 3! :D

I've called you on this nonsense so many times .... that top 20 list has nothing to do with house prices yet you choose to make the connection because it suits you.

Ha! :):) Fair call - but what would there be to talk about if we didn't question this stuff!!??

Keep projecting this world forward and you get to a ridiculous place. What happens when house prices are so large that the interest payments are more than my disposable income? I'd stick to the higher density argument. It was logical.

At this point in time you are correct - they do have the cash (or they are getting it via debt). If they didn't we wouldn't see the prices we are seeing. So I don't assume away their access to cash NOW. What I am arguing is moving forward the house prices can not outstrip incomes...

There is a lot of demand within me for a red ferrari ... but for some reason it doesn't appear.

And when they sell their previous houses where will the buyer of these houses get the money? (we could go on and on) The point is money doesn't grow on houses - it comes from somewhere. Hence your point below is a good one. Plotting a time series and arguing it will just keep following...

But your graph was not median price per square metre - it was simply median price based on a "trend". I'm saying your trend is impossible as it can't be financed. If you mean price per square metre then you are talking about something more logical.

OK - but the person they sell to for $500K or $600K - where do they get the money?

Financing house price rises Just thought I'd repeat myself ..... :)

I suspect you will be wrong. Both I (and FHB but more eloquently) have asked where the money will come from? Trend lines are interesting but you need to question the prediction of the trend with a little common sense as well. A rising nominal price needs to be financed with dollars...

If property growth continually outstrips wages growth I am wondering where the money will come from to fund the increase?