Australian Property Bubble: 1. FHBuyer Mortgage $80K overpriced

[mysupermaltese]

Love the way you proof your points with statistics, we have done similar analysis by ourselves that a lot of current trends does not make financial sense. Now seeming your video reassure that we were sensible not to over leverage but continue to build our profiles in precious metals. So thank you for your good works, we need more people like you speak with honesty.

[wonderdogsixtynine]

People are not being ripped off, property has no intrinsic value, it is worth what someone will pay for it... the market sets its value. The fact that property has 'deviated' from a short term trend with the FHBs doesn't mean it's a bubble that must burst. We have been told about bubbles for many years by many commentators, and the big fall is yet to happen. Does it mean it can't happen? Anything's possible, a longer term historical overview of housing prices doesn't support the assertion IMO.

[MrOdieT]

interest rates were 17.5% in 1990 and 3.75 in 2011 ... why would average loan size follow a straight line?

[AussiePropertyBubble]

@MrOdieT But the average loan size did follow a linear trend from 1990 till 1999 and rates droped 10% in this time from 17 to about 7%. Consequent videos explain, i believe the deviation, post 2000 in FHBuyer loans is due to more readily available funding to investors coupled with favourable concessions from government, bidding for the same entry level affordable properties as FHBuyers.

[Pipster1968]

Great video, thanks for posting it.

[SuperApparition]

Prices are going to do nothing but continue to rise. They will stabilize, perhaps fall a little, and then continue to rise. I'm a 31-year-old Melburnian and I rent. I hate renting, but I have no choice. Obviously there's a property bubble. In my opinion, the market should fall by 65% - not $80,000. But it won't happen; the Australian economy rides on the greater fool's back and any government will do whatever it takes to ensure that is always the case.

[sighbaru]

You are being too kind $80000 you would have to be joking!More like$150000 that these people are being ripped off.

[samlau121]

Excellent video!