Retiring baby boomers will keep property prices high - 2003-09-29
Apart from the fact that there is not yet a real estate bubble in Australia, versus a sustainable once-off shift upwards in property values due to lower interest rates, there is another factor that will keep prices where they are for a few years yet.
This was simply explained in a recent paper by ANZ Bank chief economist Saul Eslake: the mortgage that a couple on average weekly earnings could afford, based on spending a steady 25 per cent of their gross income on loan repayments, has gone from $136,000 in 1992 to $297,000 this year.
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