Renting may be the best option in the near future
IT might soon be time to snap out of the Australian dream, according to new research by the Reserve Bank of Australia.
The research paper, Is Housing Overvalued, by Ryan Fox and Peter Tulip predicts that if house prices continue to grow at their historical average rate owning a home may be as expensive as renting.
And if prices grow more slowly, as some forecasters envisage, you would be financially better off
Elders Ballina director/licensee Steve Leslie wasn't so sure potential homeowners should abandon their plans for property just yet.
"It's all crystal ball stuff.
"As an estate agent, I'd say if you're looking at the long term invest in your future - buy real estate.
"At the end of the day, with buying as opposed to renting, you have an asset you can do a lot of things with," he said.
Mr Leslie said "the paper doesn't surprise me - everyone has their opinion".
"But I think around our area the majority of people would love to buy, instead of renting," he said.
Visit http://www.rba.gov.au for the full research paper.