Society/Culture Australian Property Prices to Crash?

With getting older comes simply having done more work to accumulate, or as you call it 'get richer ':
These bastards worked for 40 years & are better off than me after 40 months. :rolleyes:

Are you fair dinkum ? Lets see:
'Rich get richer due to them having advantage purely based on age. This is how the housing market works in Australia. Housing it not seen as an essential need but rather an investment opportunity, it is fundamentally wrong.'

Plenty of us cant buy a place when we leave home, we go out & rent & work, work & rent, & save enough to get a deposit.
No different to the 10% + interest rates, just more of your repayment went in interest.
Imagine 13%, 17% ..... bloody lucky to have a housing loan at the moment, more money for the kids, wining & dining, a new car !! Covid.

You arent dinkum !!

you didn't even read what I wrote? Or you weren't capable of understanding it.

Older people didn't work harder for 40 years to buy their house. They just worked to pay off their mortgage, like any one does.

People who are buying their first home in 2021 aren't working any less hard than older people did 40 years ago. The issue is that people who are buying a house now are going into a debt to income ratio of 15:1, compared to an older person (40 years ago) who did it at a debt to income ratio of 2:1.

I'd take the 2:1 and the 10%-17% interest any day of the damn week, so then i can just use equity to purchase MORE property (like many older investors do and continue to do) IE get richer based off an advantage they had that current generations don't have access to IE my original post.

Older people acting like they work harder than current generations are just full of s**t. They were just lucky to be born at a time where housing was available and as such they didn't need to go into ridiculous amounts of debt to secure it, like current generations do.

These people aren't special, nor did they do anything fantastic that current generations do to get a house. It was just cheaper and easier to access when they went to buy.
 
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Aug 14, 2011
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Older people didn't work harder for 40 years to buy their house. They just worked to pay off their mortgage, like any one does.

You have more after 40 years work than 20, 10, or 5. Whether its because you pay down the mortgage or simply pay rent, the ball is in your court .... getting on the property ladder is never easy the first time, nor the next time if you have fallen off that ladder for any reason. No matter whether the interest is under 5% or in double figures, the problem is the same.

Very good article in The Aus:
'The core of CBA’s concern is the likelihood of growth in housing credit outstripping the outlook for wages growth.'
 
Aug 14, 2011
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'..... a leading investment bank found that so-called “liar loans” surged during the pandemic.

In a speech on the housing market and financial stability, RBA Assistant Governor Michelle Bullock described Australia’s property boom in the past year as part of a “bridge” of economic support built by monetary and fiscal policy support since the start of the pandemic.
“Even though the banks have strong balance sheets and lending standards are being maintained, there is a risk that in this environment households will become increasingly indebted.

“A high level of debt could pose risks to the economy in the event of a shock to household incomes or a sharp decline in housing prices. It is these macrofinancial risks that warrant close watching.”

Australian banks are “very exposed” to the housing market as around 60 per cent of their loans are for housing and homes are commonly used as collateral for loans to small business.

She warned that if there were an economic shock that caused borrowers to be unable to service their debt and house prices fell sharply at the same time, banks would face losses, which if big enough could cause a snowballing effect if the banks then reduced their lending.

'
 
Jun 19, 2011
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Hahahahaha you're funny.
Young people today want 14 bedrooms,16 bathrooms,19 car garage,jetski x2, white plastic 4 wd that's never seen a dirt road for the wife, and holidays in Airlie beach(shithole) three times a year and overseas once a year for a "proper" holiday.

Us "oldies" lived in a cheap shithole for a decade and worked day n night to make inroads to buy "up".

Your "younger," generation can't spell shithole and certainly don't know what suffering is.
Good luck with your house cleaner and the plastic BMW .
Problem is, the only old cheap shitholes are in million dollar suburbs and not so cheap anymore.
 

HirdyLannister

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Norlane and corio was worth 200k like 5-7 years ago, now lucky to find a place under 400k.
I should of purchased heaps of them in that area when I first started my apprenticeship was around 100-150k
 

Frank Grimes

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Norlane and corio was worth 200k like 5-7 years ago, now lucky to find a place under 400k.
I should of purchased heaps of them in that area when I first started my apprenticeship was around 100-150k
I think a lot of regional centres have increased in value over the last few years.

I'm not 100% sure why. It supposedly due to Covid and got people wondering if they could work from home and don't need to work in the city.
 
Jun 19, 2011
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Corio(shithole)40 minutes from Melbourne.
Norlane(shithole) 45 minutes from Melbourne.
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Yes, because moving to Seymour is such a good career move for someone just out of uni. 🤦‍♂️

FYI, Corio to Melbourne is 60 minutes plus in peak traffic, when lockdowns aren't happening. Great way to raise a family, having mum and dad travel 2+ hours in top of their work day.

You're just another entitled boomer who got the best of everything. Probably one of those locking up properties as investments so there's less stock for young people to buy as well.
 

Sqotty from office works

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Yes, because moving to Seymour is such a good career move for someone just out of uni. 🤦‍♂️

FYI, Corio to Melbourne is 60 minutes plus in peak traffic, when lockdowns aren't happening. Great way to raise a family, having mum and dad travel 2+ hours in top of their work day.

You're just another entitled boomer who got the best of everything. Probably one of those locking up properties as investments so there's less stock for young people to buy as well.
Yep.
 
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Yep and houses are newer and bigger out there. Kids aren't choosing mcmansions. They're forced on to them.

Getting started on the property ladder is never easy & it involves living where you can afford. What car you buy is your decision, how much rent you choose to pay is another lifestyle decision for many.
Saving for a deposit is a lifestyle decision as it means you go without the luxuries of life when your friends are spending .... most people with their own property know exactly what I am talking about, having the worst car because car payments delay the deposit ...
 
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VineySMASH

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Yes, because moving to Seymour is such a good career move for someone just out of uni. 🤦‍♂️

FYI, Corio to Melbourne is 60 minutes plus in peak traffic, when lockdowns aren't happening. Great way to raise a family, having mum and dad travel 2+ hours in top of their work day.

You're just another entitled boomer who got the best of everything. Probably one of those locking up properties as investments so there's less stock for young people to buy as well.

If you're just out of uni aren't you most likely going to want to live in Melbourne or Sydney (depending on industry)?

Neither of those cities are going to be affordable for a uni student to purchase a home in our lifetimes, they've grown in population by almost 100% since the 80's, and the government is committed to them nearly doubling again by the end of the century.

That's just the reality now - if you want to work and live in the big cities, you won't be able to buy a place straight out of uni.
 
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If you're just out of uni aren't you most likely going to want to live in Melbourne or Sydney (depending on industry)?

Neither of those cities are going to be affordable for a uni studeny to purchase a home in our lifetimes, they've grown in population by almost 100% since the 80's, and the government is committed to them nearly doubling again by the end of the century.

That's just the reality now - if you want to work and live in the big cities, you won't be able to buy a place straight out of uni.

Buying a place without an income needs the 'Bank of Mum & Dad' to stump up the deposit, before you go looking to live close to work in your first step onto the property ladder.
 

Herne Hill Hammer

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There is an inconsistency in government policy.

A house is supposed to be a family's big chance to invest for the future.

But when the future comes, the oldies don't want to cash in that investment. That is where the younger generation could buy property: from retirees supporting themselves.

I don't think oldies would have ever looked upon the family home as an investment, not many anyway. It was a place to raise a family and a meeting place / safe haven for after they've all flown the coop. You die and hand it onto the kids to do with as they please.
 

VineySMASH

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Buying a place without an income needs the 'Bank of Mum & Dad' to stump up the deposit, before you go looking to live close to work in your first step onto the property ladder.

That isn't an option for everyone - renting a place or even share houses are perfectly viable for anyone under 30-40 years old trying to climb the corporate ladder.
 
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I don't think oldies would have ever looked upon the family home as an investment, not many anyway. It was a place to raise a family and a meeting place / safe haven for after they've all flown the coop. You die and hand it onto the kids to do with as they please.

When your folks die often sparks a move to a better family home for the next generation as many baby boomers know. Its another piece in the jigsaw of looking to own your own home outright.
 

VineySMASH

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When your folks die often sparks a move to a better family home for the next generation as many baby boomers know. Its another piece in the jigsaw of looking to own your own home outright.

This is how it worked for previous generations I agree. But I am skeptical about how long that will be the case, particularly if there are cuts to either the age pension eligiblity or medicare.

I know my grandfather was able to afford a farm, a city house and a holiday house on the coast along with two tractors and two cars on a single income and a defence force pension. I'm fairly sure those days are well and truly over unless you're a surgeon.
 
You have more after 40 years work than 20, 10, or 5. Whether its because you pay down the mortgage or simply pay rent, the ball is in your court .... getting on the property ladder is never easy the first time, nor the next time if you have fallen off that ladder for any reason. No matter whether the interest is under 5% or in double figures, the problem is the same.

Very good article in The Aus:
'The core of CBA’s concern is the likelihood of growth in housing credit outstripping the outlook for wages growth.'

no. its absolutely not.

People getting into the market now (2021) are taking on debt that is on average 13 times more than their income and this is growing rapidly, the average mortgage just jumped 200k in 12 months. (almost 30%).

1632471171310.png


20-30 years ago the average ratio of income to mortgage was like 1:3, even taking into account ¬17% interest rates its nothing compared to the current first home buyer.

if you don't see the disparity between what boomers faced and what current first home buyers face than only god can help you.

Everyone in this thread knows knows deep down why the housing market is ****ed.......investors being allowed to use equity to purchase homes ahead of first home buyers, both Internationally and domestically. When you have the head of the *in CBA (the biggest lender of home loans in the country) publicly saying something needs to be done about the housing market, than you know something is seriously wrong.

Sit back in the cool light of day and ask yourself why governments (especially a liberal one, one that namely boomers vote in) + RBA, would not want housing prices to fall? How much do you think the combined property investment portfolios of the guys running the show is worth?

Its also funny how Mr Lowe (from the RBA) is so stuck on trying to achieve the goals of his RBA mandate, odd considering he hasn't achieved a salary increase in Australia in more than 5 years.
 
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With getting older comes simply having done more work to accumulate, or as you call it 'get richer ':
These bastards worked for 40 years & are better off than me after 40 months. :rolleyes:

Are you fair dinkum ? Lets see:
'Rich get richer due to them having advantage purely based on age. This is how the housing market works in Australia. Housing it not seen as an essential need but rather an investment opportunity, it is fundamentally wrong.'

Plenty of us cant buy a place when we leave home, we go out & rent & work, work & rent, & save enough to get a deposit.
No different to the 10% + interest rates, just more of your repayment went in interest.
Imagine 13%, 17% ..... bloody lucky to have a housing loan at the moment, more money for the kids, wining & dining, a new car !! Covid.

You arent dinkum !!

What exactly "more" think you are doing than the current first home buyer? What makes you think you are doing "more" work than them.

You buying a housing at a cheaper rate because they were cheaper when you bought it does not constitute you working harder. It means you were just fortunate to be born at a time when houses were cheaper, and if you weren't a total dumbass you can use the equity you were fortunate to get to your advantage to accumulate wealth.
 
What exactly "more" think you are doing than the current first home buyer? What makes you think you are doing "more" work than them.

You buying a housing at a cheaper rate because they were cheaper when you bought it does not constitute you working harder. It means you were just fortunate to be born at a time when houses were cheaper, and if you weren't a total dumbass you can use the equity you were fortunate to get to your advantage to accumulate wealth.
People don't like it when you remind them they're not special.

I bought a house because I'm super intelligent and hardworking and I chose to be shot out of my dad's balls in the early 90's, even though a lot of people these days waited until the late 90's to be conceived. I took a risk by being born when I was and I deserve the reward for all of my hard work and big brained intelligence.
 
Aug 14, 2011
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no. its absolutely not.

People getting into the market now (2021) are taking on debt that is on average 13 times more than their income and this is growing rapidly, the average mortgage just jumped 200k in 12 months. (almost 30%).

View attachment 1244900

20-30 years ago the average ratio of income to mortgage was like 1:3, even taking into account ¬17% interest rates its nothing compared to the current first home buyer.

if you don't see the disparity between what boomers faced and what current first home buyers face than only god can help you.

Everyone in this thread knows knows deep down why the housing market is f’ed.......investors being allowed to use equity to purchase homes ahead of first home buyers, both Internationally and domestically. When you have the head of the fu**in CBA (the biggest lender of home loans in the country) publicly saying something needs to be done about the housing market, than you know something is seriously wrong.

Sit back in the cool light of day and ask yourself why governments (especially a liberal one, one that namely boomers vote in) + RBA, would not want housing prices to fall? How much do you think the combined property investment portfolios of the guys running the show is worth?

Its also funny how Mr Lowe (from the RBA) is so stuck on trying to achieve the goals of his RBA mandate, odd considering he hasn't achieved a salary increase in Australia in more than 5 years.

I'm not claiming the property market is not stuffed.
Understanding how we got there is a graph that suits your attempt to blame baby boomers for todays problems & you are dinkum.

That you blame the RBA for no wages growth suggests you are not as across the status quo that you believe you are.

Why Governments dont want house prices to fall has many factors, not the least of which is the effect of throwing people out on the street - its not as simple as the GFC that routed home owners in the US, as those going out the front door here are liable for their mortgages.
Sure blame the rich, good one & there a conga line of people who use that as an excuse to avoid self responsibility.
 
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What exactly "more" think you are doing than the current first home buyer? What makes you think you are doing "more" work than them.

You buying a housing at a cheaper rate because they were cheaper when you bought it does not constitute you working harder. It means you were just fortunate to be born at a time when houses were cheaper, and if you weren't a total dumbass you can use the equity you were fortunate to get to your advantage to accumulate wealth.

The idea someone working for 40 years, earning money for 40 years, has done more work than someone who has been working for 10 years, earning money for 10 years. Thats not got anything to do with working hard. Compre?
People working 6 day weeks do more paid work than someone working 4 day weeks - they end up with more money to spend, to save, to acquire or pee up against the wall.
It does not constitute working harder. Not Einstein stuff Hirdy even for a dum-ass, you'd wouldnt hear about it, dumbass.
What about equity, you were close but no cigar AGAIN.
 
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This is how it worked for previous generations I agree. But I am skeptical about how long that will be the case, particularly if there are cuts to either the age pension eligiblity or medicare.

I know my grandfather was able to afford a farm, a city house and a holiday house on the coast along with two tractors and two cars on a single income and a defence force pension. I'm fairly sure those days are well and truly over unless you're a surgeon.

Follow where the money went after your grandfather departed this world & I'd reckon you would know the answers. Asset values have a relativity, a house, a holiday house, a pension - how many people got a feed.

My folks home was divided 3 ways & my mortgage got the benefit, & my 2 kids will get the benefit of that. Mind you the folks home was a 2 br home, built after Dad got back from Europe after WW2 & it was built in the late 40s, in the sticks on a gravel road, no driveway or garage, not a problem because they didnt own a car. No service pension, a war service loan though.
 
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