About the expensive housing market

There is a lot of talk about the expensive housing market.  The following points need to be addressed like:

• The cost of replacing your house when you sell.
• The distance from services, eg hospitals, doctors, shops, busways, train line, and so on if buying elsewhere.
• Consider what may happen if Interest rates go up some time in the future; this would be inevitable on a 25/30 year loan. .
• Building materials have gone up in price partly due to the demand on supplies during the boom, and in some cases certain products are out of stock.

Having cash readily available is a great asset, or having an investment that can be converted to cash as required.  This will give a lot of bargaining power knowing the contract will not "fall over" waiting for the buyer to obtain finance.

I remember when interest rates were 14% (and return on money in the bank was reasonable).  It was not a matter of what you liked, or preferred, it was a case of who would lend a buyer the money in the first instance.  It was just settling for the basics and hoping in the future those luxuries could be added, eg a back verandah, a second toilet, cement driveways, etc..

The world has become an instant gratification arena.  There is still merit in caution, beware of the points above, and always factor savings into the budget.