Of course, if you can’t afford to buy because you are unable to save a 5% deposit - which might be anything up to $20,000 less any applicable first homebuyer grants - that’s a different matter, and I completely understand why you’d want prices to crash. It wasn’t a thousand years ago I was a renter myself after all. That said, if you aren't presently in a position to save, you shouldn't go near debt at all, let alone be thinking of taking out a 25 year mortgage contract.
100%+ LVR products can be disproportionately advertised by financial comparison websites. Why? Because by definition they are the bulkiest loans on offer, they attract extortionate Lenders Mortgage Insurance (LMI) which is often tacked onto the loan principal (lenders love this) and can attract higher interest rates to compensate for the higher counterparty default risk.
The quintessential dot-com-bubbler typically had an astronomically high 'P' and frequently no 'E' at all (or indeed any realistic prospect of ever having any 'E') - resulting in a preposterous ratio of infinity - thus making an immediate nonsense of any assumed parrallel which is apparently being ignored by economists and "experts".
Moreover, as well as an increasing annual rental income for landlords, housing serves the very real purpose of shelter for most Australians. This is most unlike the speculative mania seen in the NASDAQ's too oft-cited 'theoretically this wheeze might one day generate revenue' doomed IPOs and ill-fated micro-caps of the 1997-2000 tech bubble.
This is another reason why the so-termed 'Buyers Strike' ruse failed to launch and why first homebuyers are now returning to the market as will be proven by forthcoming data releases, in spite of regular claims to the contrary. Australians will always need homes to live and shelter in and homes to rent; one might as well try to organise a strike on breathing as one on housing.
Below is how HSBC view Australian housing prices i.e. at the same level for more than a decade. I acknowledge here that these being nationwide figures which quite rightly incorporate the price of apartments as well as detached houses, in desirable parts of some capital cities the ratio will naturally enough be higher, as is the way of the unequal world we live in:
In fact, a significant proportion of households in Australia have no debt at all against them (more than a third of them in the two most populous states, as well as in smaller states such as SA and Tasmania) which tends to make serviceability a fairly comfortable proposition. With falling repayments on both existing and new housing loans in recent years many Australians have taken the welcome opportunity to get months ahead on their repayments: