If I'm cynical, it sound like this property cycle is designed to...

  1. 550 Posts.
    If I'm cynical, it sound like this property cycle is designed to hook people into debt for life.

    In Western Sydney, about an hour from the CBD, for $800K a young couple would be lucky to find a small 560m2 block with an old but liveable 110m2 house on it. With average income of some $50K before tax, both partners better be working or else they won't be able to eat, or bathe, or have their lights on.

    How are they suppose to start a family? It'd have to be accidental to have a kid with all that mortgage over your head.

    Imagine when interest rate rise a percent or two. Or some emergency, some repair to the house; or that accident starting school...

    When all your earnings goes towards the bank, how will that affect other sectors in the economy? Beside alcohol and anti-depression, divorce lawyers, most aren't going to do well either.

    But there are plenty of buyers rushing in... and it's not just for that average $800K either. It's $1M to $1.5M for a bigger block ready to be knocked down or sub-divided (STCA, as the agent will tell you). Seems every dick and harry want to be a developer nowadays.

    Man, when this hits the fan, it'll wiped clean a lot of people's life's savings. Sensible, and poor, people like myself who've been saving and investing will also be collateral damage.. .and that's just unfair seeing how I don't even have the feel-good feeling one get bragging about "owning" this or that property at BBQs.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.