Doesn't matter how you twist it Rehctub, the market priced to the amount of money available.
A confirmation can be seen in the rise in the age of the first birth.

Bazz, there's no twist involved, as you are clearly stating that housing prices arelinked to dual incomes. That's simply not true, because it it was, wages between 2000 and 2005 would have increased by some 300 to 500%.

They didn't!

rehctub,

It is a pleasure chatting. I disagree with you on risk and we can leave it at that. Just as a helpful hint on tenant insurance, insurers are invoking conditions that will give you cause to wonder about its worth. On deductability, you have to earn to pay outgoings. Inevitably any payment is out of your pocket in some way or other since it comes off the top, your gross earnings.

Well Rehctub, perhaps the wages increased by only 100%.
I don't have the figures, do you ?
No doubt house prices went up, but I do not know how fast.
I find it hard to believe that the developers did not take advantage
of the extra money in the market.
I do remember the rise happening but I cannot put a figure on it.

Yes Bazz, there is no doubt developers/builders were guilty of gouging.

I say this because in a matter of about four years, 1997-2001 building prices went from about $800/m2 to around $1300/m2. Admittedly the GST came in then as well.

onthebeach, yes, you do have to earn the money first, but you get a portion of it back come tax time, if applicable.

As for being a landlord, the rewards are fast being swallowed up by the negatives and, if they do drop NG it will be the end of rentals as we know it.

I see a determination to say no bubble exists and no crash will come.
And I see many things blamed for housing price rises , clearly Rechtub is right wages in no way, contribute to the current increase price rises.
It seems true, that many have over committed, bought house that with the slightest change in their circumstances they can not pay for.
And how do we link Australian wages with the huge evidence Chinese are the biggest buyers in the Sydney market?
I think we should not ever forget every investment has the potentual to fail us.
The over committed are the first stone to roll, if we enter harsh times for jobs or interest rates