> So many people say this, presumably because "it must be true". Consider this link: http://www.smh.com.au/business/property/median-asking-price-for-sydney-ho

> So many people say this, presumably because "it must be true". Consider this link: http://www.smh.com.au/business/property/median-asking-price-for-sydney-houses-tops-1-million-20141112-11l0pm.html http://www.smh.com.au/business/property/median-asking-price-... * Across Australian state and territory capitals, the median asking price for detached homes jumped $6,400 over the week to $755,100, the figures show.* At a rate of 6% the interested alone on that loan is $45,000.00 a year. Move that rate to 7% and that jumps to close to $53,000.00 a year. How can any family earning average or better than average wages every have enough income to cover those interest re-payments? > Australian demand is propped up by Chinese flight-to-safety money, and housing demand (especially in Sydney and Melbourne) remains very high. I don't disagree with this and I have no doubt the prices are being over inflated by a large numbers of oversees investors. Hover, part of that problem is the Australian government is not enforcing it's own rules regarding home ownership. If a foreign money buys a home in Australia the owner needs to be a student or a permanent resident. Currently there is massive level of overseas investment in Australian driving up the prices in the housing sector but most of that investment is actually illegal: http://news.domain.com.au/domain/real-estate-news/parliamentary-inquiry-recommends-crackdown-on-illegal-foreign-purchases-of-australian-real-estate-20141127-11uz86.html http://news.domain.com.au/domain/real-estate-news/parliament... Australia also suffers from demography issues in that there are so few cities where you can live. Unlike the US where there are numerous big cities options, in Australia there are less than a dozen such big city locations to choose from. That factor alone is also putting upward pressure on housing in those areas. The question is will interest rate every go up. That is not certain since the world is still suffering with the issues of the last GFC. But in Australia if those interest rates do ever start to move upward, which would be an indication the country is finally showing something in the form of economic growth, those rising interest rates are going to cause problems with those massive $1 Million+ home owner debts.