"most first home buyers are in their 20's, with a large percentage early 30's
most first home buyers are probably on $50 - $55K"
Okay you may be right but if they are not an the average household income then they shouldn't have an average FHB loan (i.e. they will have a smaller one)
"some have kids.. " My figures were for a family - like I said they can live comfortably NOT lavishly.
"your also assume they own a car outright" There was still some funds available to perhaps handle a car purchase. However that said you do not need a new car - you can buy a car that is more than sufficient for your needs for a few thousand dollars.
"you assume they dont need to buy a new car in the time of their mortgage, or have to buy clothes, TV's fridges freezers microwaves and all the other things replaced as they break down" Again there was some money there for replacing these items. You also assume that interest rates will be 10% for the whole loan which is not the case they will likely be lower for a fair chunk of the loan period. Also over the years you will be getting wage increases - the first couple of years will be the hardest. Again you also assume you have to buy these items new - you can buy a second hand item that will more than do the job for a while until you can afford to buy a better replacement.
"at anyrate there is not enough salary to cover this." You have definitely been proven WRONG on this - there may not be enough salary for you to live on this size mortgage but it can be done but that does not mean that it will be easy at times.
