housing to devalue 40 to 60 percent, page-19

If you dont accept my view that housing will drop between 40 to 60% then I guess you are saying the whole of the cba analyst are wrong. A bank that has a huge share of the housing market. How can a bank that lends the money be wrong about the market predictions.
Futhermore you might argue that housing has gone up 300%, now lets do some maths. Alright say you purchased a house for 120k 10 years ago and you make 300% or 360k, a drop of 405 would take that price back to $216k or 60% drop bank to $144k.

I do realise that at the lower end of the market that houses might drop this low but this is an example. It shows that how you can loose your capital gain very qickly in a market fall.

I hope you all realise that a first home buyer on $650 per week can barely afford to borrow $200k. I will illistrate this below.


Average wage of 35k take 5k tax leaves you with 30k

or $570 per week after tax
PER WEEK EXPENSES HYPATHETICAL
$400 house repayments on $200k
$150 food
$50 entertainment
$20 power
$15 House insurance
$20 medical insurance
$140 car expenses inc rep cost,servicing
$30 mobile and phone
$12 internet
$12 car insurance

grand total $840

ooops only $570 per week shortfall of $270