I too am in Brisbane and have also seen the huge amount of townhouses swamp the market. The ones near me at Murrumba Downs are also selling for less than when they were new.
A lot of young people over the years have gotten caught up in the "flipping" of properties and making money. Personally I have no sympathy for them if they get caught out when the music stops. I hope they go to the wall actually. Serve them right for being greedy.
The key imo is employment. Whilst people have a job they can pay their mortgage. After that, increases in rates will hurt their lifestyle (no more spending big dollar on the 4x4 other toys and eating smashed avo)
As for FHB's, hopefully they were wise enough not to borrow to the hilt whilst rates are at record lows. That would just be silly.
We built a new home for $430k about 8 yrs ago. I haven't had it valued but going off my neighbour recently selling, I reckon our place would be worth $470k - $480k max.
I've paid more than the minimum repayment since day one but a few increases in rates would have me worried as my wage has been falling for years in real terms. I've run out of belt tightening. (I'm 39yrs old fwiw)
