exactly.....I know the bears denounce cheap debt as the global...

exactly.....I know the bears denounce cheap debt as the global financial con job problem...
and all us home and property owners, have contributed to the GFC, but it will come back to bite us, and we will lose our homes..etc.etc.etc

the GFC had little to do with debt for the ordinary household, but had everything to do with greed, and fraud, by the bankers themselves...think goldman sachs, lehmann, maddoff etc....

I am like you, Iborrow at low rates, and buy capital appreciating assets....not capital **depreciating assets...

which is not the car, boat, tv, or games....

if I had to wait and save the cash to buy the houses, I would never have surfaced from the renting game debt....I would have nothing to show for a lifetime of work...neither would millions of other home owners world wide

I recall many who came to this forum, stating they would make a motza out of share gains, and hated debt, they would pay cash for their houses, cars etc....
I guess they either changed their minds, or are still waiting to make the motza....and then buy the house...which is now about triple the cost

in an example yesterday... re bank loan for housing...Bg listed car payments at 200pw, a gross income of 65,000
living costs of 350 pw with a spouse and 2 children...

that is around net 50,000 pa after tax...or less than 1000pw...and one is paying 20% of that for a car....no wonder in that example, they could not afford to buy a house....ps must be a fancy car for around 867 pm

now I just plugged three sets of figures into westpac for a home loan...
income net after tax of 4166 pm..rent 867 pm, car 867pm, 3 dependants..is spouse and 2 kids... loan available = 931

same figures with only 2 dependants loan available 58312

ditto with only one dependant ie spouse or child...loan 113383

and the statement regarding needing a deposit of over 240,000 to buy a median 480k house...is 'pigs might fly' stuff...its all hyperthetical..
to begin with, the bank would not lend any money to begin with on those figures....
the banks are not silly...they expect one to pay normal living costs....so a loan of only 113,000 is all they would lend,,,,take out the car and they would lend more...but only an affordable amount...

back to the real world.....