Mac, just how is the housing market going to halve in value?

The renters will still be there and the demand will keep increasing so long as we keep allowing so many in who soak up our over generous welfare.

while i can see a downturn, i cant see a complete crash as per your prediction.

There are two essential ingredients to affordable housing.
First, one require a disposable income. Second, buyers then have to shop in a market that is affordable to that income. It truely is that simple.

Late' sippers happily fork out $50 per litre for warm milk, then complain because they cant afford a house. Then there are those of regular incomes, ecpecting to buy thier first home for $600K. They are in lar lar land.

There is no such thing as a housing affordabillity crisis if one looks in a market that is applicable to thier incomes and, if their incomes are too low, then work longer or gain a better set of skills.

As a butchers we comonly worked 70+ hours a week and had to do this if we wanted an income in keeping with prefessionals who made similar dollars in a normal week. It's called life!

Im sick to death of people expecting others to fix their problems.

Morrison has got the debt fixed, you just cut it in half, good debt and bad debt. So the debt is a claytons'debt is it there or is it not. No doubt this will result in more user pay toll roads. That will be good debt. So not counted as debt, all you have to do is pay the borrowing costs. That is where Morrisons bad debt is. So we have no debt.
The only debt we have is how much interest we pay on debt we dont have. When our interest payments out weigh our GDP income we will be broke.

rehctub,

(1) "just how is the housing market going to halve in value?"

That's an understatement, the market fell by a greater percentage in some European countries and the US during the GFC.

(2) "..while i can see a downturn, i cant see a complete crash as per your prediction."

That's a reasonable comment, I'm just more pessimistic, only time will tell.

(3) "There are two essential ingredients to affordable housing.

"First, one require a disposable income. Second, buyers then have to shop in a market that is affordable to that income. It truely is that simple.'

No, it isn't, it's more complicated. Relatively high population growth rates and the encouragement of rentier 'investors' have forced up house prices. For many people,there is often no segment of the market that is "applicable to their incomes". The ratio of median house prices to yearly incomes is much greater now than for earlier generations.

The budget has a revenue problem which is compounded by the tax cuts the Coalition has allowed to business. I don't know of any evidence that supports the myth that tax cuts encourage investment. Multinationals are experts at tax avoidance, so far little has been achieved to remedy the situation.

(4) "Im sick to death of people expecting others to fix their problems."

Often those problems are not caused by the people who are in economic distress but by inept government policy. The solution to the housing crisis is simple, reduce immigration and keep the parasitic rentiers out of the market.

As I commented earlier, the country's "Sword of Damocles" is not public but private debt.

Australia is too diverse to have a collapse. Housing prices are out of control in sydney and melbourne. Perth has a population shift to contend with.
What you will see is a gigantic amount of bankruptcies in the overpriced areas. That will be caused by interest rate shift and not the cost of housing. People will be out on their ear with out a credit rating. It in turn will cause marriage breakdowns and possibly suicide.
It is ok to say we have a free market and it's their own fault. On the other hand it is a govt policy fault, not being able to intervene, being a Liberal govt.
You would have more hope of a stable housing market if we had a Labor govt.
The run away prices in Melbourne and Sydney should have been regulated with interest rate specific zones [which goes against liberal policy]
When interest rates do rise it will be a disaster for the people involved in low interest borrowings. If people can not handle an interest rate of 6.5 7.5 % they should not be allowed borrowings. But that is something for a labor govt.