And here is another thought. What if most people have got it all wrong and prices are not insane. It is all relative right? We hear property prices increasing by 20% over the past year, people making 30-40% capital growth gains in less than 1 year in some places, places going for 50% above reserve, month on month, week on week strong capital growths etc...but what if Australian property (focusing on Melbourne's case, as that is where I am from) has been undervalued and dormant for all these past years. What if Australia is like a sleeping giant with the realisation of its 'true strength and value' right now? What if Australian property prices relative to the world (and what you get) should have attracted these prices 4 or 5 (or even more) years ago? What if this is equilibrium or the so called 'new equilibrium'.
Whilst I like to point out that I think prices are getting quite 'heated' but still, I only hold this 'pretty hot' line of thought based on growth that has well and truly exceeded my expectations and to some extent, the type of growth that has occurred for the past decade or so. Maybe I (as with many people) have got it all wrong, and prices are actually fair and reasonable (for what you get) and it is only NOW that people appreciate the worth of Australian residential property.
340K sounds more like it..
