[BA-XT]

Originally Posted by zilo

Oh? wages haven't been going up by 8% long term, where do you reckon the money will be coming from to keep that ball rolling along?

When you say drop by 5% a year do you mean they drop by 5% as well as not achieving the 8% compounding...cause that is 13%

Yes wages have been stagnating for years. The entry level price for a 3 bed house in the western suburbs of Melbourne is around $470 - $500k. Getting the deposit is the hard part.

I remember looking at these types of houses a few years ago and it was around the $400-$420k mark.

My maths is poor average at best, but I see what you mean by the 13%. Long term though it goes up. Also being able to do things to your own home. I'm sure it's nothing new to a lot of people here... but being able to shop for curtains was a nice thing. Putting up pictures and even failing digging up a large yukka plant is quite the novelty to me :-)