Ready for average home to cost $1m, $2000 a week rent?
ONE of Australia's biggest residential property investors claims Sydney's median house prices will hit $3 million in the next 20 years and climb to $1 million in the next three years.
And home prices in Brisbane and areas such as the Sunshine Coast won't be far behind.
A new report from RP Data shows that the median house price in Sydney has had hit $800,000 for the first time.
Property Club founder Kevin Young said Australians paying average rents of $500 a week now would be paying more than $2000 a week in 20 years time.
The claims are in stark contrast to other forecasts which say the Sydney market has hit its peak and the housing bubble will soon burst.
Property Club has more than 80,000 members and more than 4000 current members in its Property Millionaires Club for residential property investors.
Critics say those property investors are the ones driving up property prices and rents.
"Australia needs to wake up. Our property prices will go the same way as the major cities in the United States, United Kingdom and major European nations," Mr Young said in a statement this week.
An apartment in London set a new record at the weekend: the unfurnished unit in Hyde Park sold for $A237 million.
Mr Young said he feared for the plight of the homeless and first-home buyers in Brisbane and areas such as the Sunshine Coast.
He released his own research showing that the average rentals in major Australian cities, including Brisbane, were $17.30 a week in 1973, and forecast this would climb to $2115.40 by 2033.
Mr Young said instability in Australia's interest rates driven by the Reserve Bank of Australia would continue to force house prices up.
"Our interest rates should drop to 2.25%, but they are double that because the reserve bank has neither the power, nor the stomach, to enforce what should be the right interest rate in Australia."
He said the Federal Government had to pull a rabbit out of the hat to safeguard housing affordability in Australia.
"Australians need to be able to tap into their super funds early to invest in property, including their own residential homes," he said.
"We have trillions of dollars tied up in superannuation, which is working very ineffectively.
"That money should be freed up."
Mr Young said the homeless and struggling first-home buyers in Brisbane and on the Sunshine Coast were the real losers.
Kevin Young: Mr Young is a BRW rich lister with an estimated personal fortune in excess of $200 million.
WHAT DO YOU THINK? IS MR YOUNG RIGHT OR IS HE JUST FLOGGING REAL ESTATE?