some cold hard facts, page-6

My friend just bought a townhouse in Dundas, Sydney, for $485000, frankly this price is not expensive in current sydney housing market.

His after tax income per week is around $1000, but his wife cannot work due to looking after the baby.

He borrowed $390000 from the bank at 7.2%, he told me actually he is acared a bit:From now on his bills are quite clear:

Paying $28.5k interest for the bank, interest only.
$2500 for strata
$1100 for council
$1000 for water
$1200 for electricity
$800 for internet &tel
$800 for housing insurance
$5000 for his car( petorl, insurance, rego, repairing)

=$12500 +28500
=$41000 per year

Income=$ 52000-41000= $11000/52= $211 left per week.

With this $211 left, he has to buy food for 3 people for 7 days, clothing, shampoo, medicine, lotto ......

He told me he really got no idea how to pay off the capital for his house-- $390000, he does not know when and where he can travel, doesnot know how to pay childcare when his kid needs.

This is one case how the housing bubble works....

I donot know how many families in Aus living like this?