How many investment properties is too many?

[Lilith7]

Young people are stuffed now. Back when we bought in 2008 we bought a 3 bedroom house in an excellent area of town for $250k, which was easily achievable for a couple on a low income with a small amount of savings $16k (we borrowed off parents instead, to be paid back when house sold). It was just a case of looking around and finding something. It would have been considerably easier about 3-4 years prior, but I wasn't married then.

Now the equivalent house is probably 700k and wages have only risen probably 30% since then. The issue is the house prices are on an exponential curve, so it is extremely difficult to get on the ladder. I have a friend in Auckland the same age as me, married with three kids and I don't see any way that he will ever be able to buy a house. His rent takes most of his wages so he will never be able to save for a deposit, as the house prices are rising way faster than he can save. He's ruined.

There's very little chance for most younger ones these days to ever own their own home. Regardless of how hard they work, when prices are so high & wages comparatively low it just can't happen.