personally I highly doubt we will see the 40-50% drops in house...

personally I highly doubt we will see the 40-50% drops in house prices that the panic merchants are pedalling, highly doubt it. I think at worse we could see the property market cool by 10-20% or more likely a period of low or stalling growth. Of course there could be some areas that do worse than this - talking averages here.

this is not the USA! you can't walk away from your morgage here - your debt will follow you all your life until its paid in Aus. We also have a dramatically different supply and demand situation. People simply wont sell there properties here for 40% less than they bought them for (apart from a desperate few).

just my opinion.