record property drop in melbourne, page-9

i dont see how people can not think prices will fall more.

when home loans were at around 7.5% a $300K mortgage cost $22K a year in interest (before capital)

now home loans are around 9.5% which now costs $29K a year.

If home loans go up to 14% say, it will cost $42K almost double than before.

which means people can only afford to borrow half.. and there is your 50% drop in house prices..

3 more years of subprime losses to come.. fule costs going up, going to get a lot more ugly yet.