Comments by "John Woodrow" (@johnwoodrow8769) on "‘Really scary time’ for those yet to enter the housing market" video.

Well I'm 69 years old, and it was not as bad as it is today. No where even near it. It would be impossible for me to be late 20's when we bought out current home, and pay well over $3 million dollars for it. A nothing home on a relatively busy street sold for over $3 million just around the corner last weekend. I reckon it's true value, even in today's market, should be about about that.
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@nobody6056 The big difference when we were young was inflation. Yes, the first couple of years were a struggle, but wages were going up 6 or 7% a year, so was the value of the house. After about 5 years the repayments became easier and easier as wages increased. Interest rates were 17% when we bought our place, and the purchase price of the home reflected that. We learnt to live to make the repayments, but it didn't take long before interest rates started to decline significantly, but we just kept making the same level of repayments. I think we owned the home in about 7 years, certainly was no more than 10. My daughter is now the same age as I was and looking to buy her first home. Without us to help her SIGNIFICANTLY there is no way she could buy one, not even a knock down pile of junk out in the very outer suburbs. Even if someone can scrap in on the low fixed interest rates currently being offered, these rise significantly at the 3 year mark when the loan reverts to variable. With flat wages they would be finally wiped out.
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@andrewbroome7404 The ratio of house prices to annual income is a totally pointless measure. The only measure that counts is 'affordability', the percentage of a persons income required to service the debt. At 17% interest rates I can assure that every available cent was required to service the loan. What was a blessing is the extremely high interest rates had to eventually fall, making the repayments easier over time or paying of the house quicker if the same level of repayments were maintained. That is where people now are going to come unstuck, because the exact opposite will happen. The current record low interest rates WILL rise, recent entrants to the market won't be able to afford the repayments (especially when the variable rate component kicks in), and house values will fall (less affordable and fire sales).
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