The great Australian housing rip-off

The eagerness of Australian banks to lend has widened the house price-to-income ratio. For many young people today it makes little financial sense to leave the rental market.

Owning your own home remains a dream for many Australians, but an increasingly difficult one. In our pursuit of home ownership we are frequently ripped off, with new evidence from the Reserve Bank of Australia suggesting that housing is severely overvalued. Combined with a soft economic outlook, younger Australians would be well advised to think hard before taking on excess leverage, borrowing from their parents and entering Australia’s housing market.

The RBA released an interesting research paper yesterday on housing valuation by economists Ryan Fox and Peter Tulip. They ask the pivotal question: Is housing overvalued?



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles