Is Melboure about to burst?

Which market area are you buying in?

I'm in the same boat. I look at it like this. Markets do crash but I will never know when, and I won't know how much it will drop.
Currently apart from credit restriction to investors nothing major has changed and even if interest rates go up, they are still super low.
I have safe employment and can manage if I don't.

My range is around 800k, give or take 50k. If prices drop 20% then I loose 160k on a 800k purchase.
I'm ok with loosing 160k to get into a house now which I need for my sanity, and for my wife's business. But I'm not ok with prices rising another 100k as nothing has really changed to affect prices yet and they should still grow in price under the same circumstances that got em here.
Yes the are very high, but yes they can go higher and it may take years to drop. They will drop, but when?

 

Typically Syd and Melbourne are about the same in value (if you look before each booms), however Sydney is currently a lot higher so either Sydney needs to stop or come down or Melbourne will continue to grow or stop.

The best time to buy is really when you can, no one can predict the market 100% but if Sydney was declining and Melb booming then I would be more tempted to hold off.

 

I hope the 3 bed decent sized apartments all can't get the foreign buyers settle around Clifton hill, Brunswick, South Yarra... well that's not going to happen so I'll just have to keep dreaming about buying one of these for my PPOR. All this talk about a burst- none of the good stock will get cheaper, if any.