I still have to ask the question... how are they affording the median price?
Eg: median house price @ Melbourne is around $500k at the moment.
Given you have good deposit to avoid mortgage insurance you would need to borrow around $400k.
@6.5% for 30years - $2530 per month
@8.5% for 30years - $3075 per month
Has everyone received a massive pay increase over the last couple of years (and I haven't
?) Sure you blokes in WA employed in the resources sector have done pretty well - I may need to join you guys just to get into the housing market and not eat baked beans for dinner 6 nights a week.
...or sell my booty after a sail at st kilda 
no one HAS to buy a house. in fact if you rent and invest the difference youd pay on a mortgage, at a 8% ( even 6) return average youd be ahead. most of a mortgage repayment is interest for a long time anyway. if i hadnt got in early (1996) there is no way id buy from scratch now. we bought this place in bad way and have been doing it up for the last year. paid 330k all funded by mortgage and thats hard enough. gotta get that boat.
Sorry to be neggative, but... its the magic of compounding, isn't it?
Most people have a home from around the age of 25 - 30 years (after they've foregone some gear !! and saved a deposit). They then have it for 50 years or so.
Inflation runs at 2.5% - that means that in 28 years the property has doubled in value, or effectively, half the mortgage has been paid for gratis. In 50 years its two thirds of the property has been 'paid' gratis. Looking at it another way, in 28 years time, your income has doubled, but the mortgage payments have remained the same. By that time, you will have paid off a 25 year mortgage.
I could go on, but, the bottom line is, its hard to pay the mortgage in the first few years, but then it just gets easier and easier.
And yes you could pay a rent (4% rental yield), but after 28 years you end up with nothing (unless you really do invest that money in the stock market and get at least 6.5%). Or you can buy (at an average 6.5% interest yield), and own your own home. Its a choice.
?) Sure you blokes in WA employed in the resources sector have done pretty well - I may need to join you guys just to get into the housing market and not eat baked beans for dinner 6 nights a week.
reiwa.com.au/?prop_no=7&searchRef=Yangebup&ID=2653759
10 mins from freo $379k
reiwa.com.au/lst/lst-ressale-details.cfm?prop_no=1&searchRef=Armadale&ID=2655746
armadale foot hills $295k
Im not a real estate person or have any interest in the above, I just see options for starters. Our 1st house was a fibro ex homes west house, never liked it much, but had a good time there for 3 years or so.....
