here is better calculationbased on house prices in wa and...

here is better calculation
based on house prices in wa and tcisbosses figure for debt

"the average Aust loan is 226,100 for a person who is not a first home buyer the av for first home buyer is 228,600"

say 226,100

in perth the average house is $426,000

the balance sheet looks like this

assets = $426,000
liabilites = $226,100
equity = $200,000

debt/equity = 113%

gearing is about 53%

house prices would have to fall 46% to wipe out all the equity

60% of australians wealth is in houses

if the market fell 23% from here home owners would lose $100,000 or half their equity

the interesting thing is that the australian stockmarket has fallen 42% this year

who is to say that house prices won't follow suit?