so home prices are going to plummet, page-71

Pennyo

The 1:7 ratio crap really is crap.

I dont care what boardroom economist or other diatribe Government official claimed that is fact.

Do you really think all houses have been bought in the last 12 months....no they havent.

30% of homeowners have no debt on their house, so they dont fit your equation do they?.

Can you not find a place to buy for 300k or less in every state in Australia? I can...why do others find it so difficult?


Average earners need to live in the average areas if they wish to buy.

Right or wrong its the way it is.

Those that bought 3,4,10,20,30 years ago dont really care about the 1:7 ratio or any other ratio.....they have equity.

New home buyers just need to save more,work harder and buy where they can afford if they choose to buy.

Lets say house prices drop 20% as you are predicting...


At 7% interest only on 300k mortgage = $1750 month

at 240k (20% drop) the repayment is 1400 month.

So will the $80 week saving make all that much difference for you?

Or should the average Australian just forgo the plasma at $4000 ??