First of all Sydney has gone through a housing bubble it just started deflating earlier, and slower than the states. Most likely that has to do with the fact that the loans on offer weren’t quite as toxic. I meet lots of smug Aussies who think its different here. They are wrong.
Housing is still overpriced relative to what people can actually afford. Aussies have been playing the same game that Americans have with respect to housing and for just about as long. Immigration is continuing here in Sydney but from what little I know its a slow trickle, not a flood. Its not like the Australian govt lets lots of foreigners in willingly. (I’m here on a tourist visa)
Rents are exhorbitant here, but that doesn’t make buying a good idea when the jobs market is tanking in the sectors which produce high paying jobs, ie RE finance and to a lesser degree tech. A low interest rate is only good if you are going to hold for a long time.
In summation, there is a buble here as well, people are in denial, but they are coming around fast. They see whats happening in the states and they know that their economy is inextricably linked to ours.
I’d wait, but thats just me. I’m only here til december, then back to grossly overpriced, sunny, San Diego!
