housing to devalue 40 to 60 percent, page-25

As usual there is the demial factor kicking in here

If it does happen it will only be the outer lower income areas

will not happen to inner city properties

will not happen top better value properties

RUBBISH

yes the lower income outer suburb areas there is normally in times of downturn in the real estate larger volumes of properties on the market and therfore causes prices to fall further

But many inner city and higher income areas people on mortgages are more highly geared and often relying on investment income and returns to contribute to funding their life styles including the mortgage. Many of these ares felt the effect after the 87 crash and after the tech boom

Just as a few years ago in the US (before the sub prime problems) there was a record number of people filing for bankruptcy.

When the figures were looked at it was dicovered the large majority were people in the 30 to 45 age group mainly professionals on higher than average earnings.

People who had bought homes in more up market areas, where they were buying better homes, access to better schools and facilities. The only problem was they were that highly geared there was absolutely no buffer for anything going wrong.

One or at times both spouses lost jobs or faced with cuts to their pay or had to take time off work due to illness and their whole world colapsed.

Anyone who does not think there are people living in more up market areas in Australia are kidding themselves