... no mercy for homeowners ..., page-11

Don't know how accurate this is, but if you earn less your pretty well stuffed in buying a house and how many people have $40,000 saved on this income. Not many I would have thought.

Annual income $80,000 less tax $19,850 = $60,150

assume 35% for house affordability repayment
35% of nett income = $21,052/12 months = $1,754 available

deposit of $40,000

30 years @ 9.75%

you can borrow $244,154

Question is where can you buy a house for $284,154 (out in the sticks)

with an interest rate of 7% you can borrow $303,639

source http://www.newhouses.com.au/

median house prices Victoria

http://realestateview.com.au/median/