Boomers vs Kids these days

[MarcusP2]

yes, the entire history of economics within the known world

high interest rates are the classical response to reduce inflation

and as for locations, they the ones with the high price tags. You can always go unfashionable locale. Even now

I bolded the point where it says 'young people want everything now, not work their way up'. Is there any evidence for that statement?

 

[Mr_Moogle]

Adelaide property market is achievable (I bought a 2 bed unit within 10 k of the CBD as a grad). Somewhere like Melbourne, you are paying $450K for a 2 bed unit in Frankston 50km away.

This wouldn't be so bad if jobs moved with them. Sanders is right in that houses in inner city suburbs aren't necessary (they weren't always inner city)...but that requires investment in public transport, jobs etc so you aren't on an island or spending hours commuting every day. Affordable houses still exist, they're just in locations that can have a significant impact on your quality of life, and even at the low end I would suspect they are more expensive than affordable homes from the 80s and 90s.

Yeah that's why I mentioned places in Adelaide around the 300-350K mark because those locations, while further from the CBD, are still pretty reasonable as far as commuting goes.

At the end of the day if a younger person is forced into a long commute to attain cheap property, they would still be looking at that situation as being inferior to what their parents had. My boomer parents are working class people who never had a huge amount of money and despite this, they never had to live further from the city than Hallett Cove.

 

[footy4ever]

Yeah that's why I mentioned places in Adelaide around the 300-350K mark because those locations, while further from the CBD, are still pretty reasonable as far as commuting goes.

At the end of the day if a younger person is forced into a long commute to attain cheap property, they would still be looking at that situation as being inferior to what their parents had. My boomer parents are working class people who never had a huge amount of money and despite this, they never had to live further from the city than Hallett Cove.

By choice I live coastal way further south than Hallett cove. Commuting to the CBD is ridiculously easy either by car or public transport.

 

[Mr_Moogle]

By choice I live coastal way further south than Hallett cove. Commuting to the CBD is ridiculously easy either by car or public transport.

That goes back to Marcus's point about investment in infrastructure. That trip wasn't as fun before the existence of the express way.

 

[Jbudds]

FFS.

FFS.

I like your Plato comment.

 

[footy4ever]

That goes back to Marcus's point about investment in infrastructure. That trip wasn't as fun before the existence of the express way.

Correct, it wasn't as easy, but infrastructure progress makes it a viable place to live even for people needing to commute to the CBD. If you are employed, it has never been easier to by a property.

 

[Mr_Moogle]

I saw some smooth brains mid last year do it.

Misty was kind of doing that. Something about taking on risk so others wouldn't have to and providing people with accomodation. As a landlord myself, I got a good laugh out of that.

Correct, it wasn't as easy, but infrastructure progress makes it a viable place to live even for people needing to commute to the CBD. If you are employed, it has never been easier to by a property.

In Adelaide sure. It's pretty reasonable here. You can live in a nice spot and not pay too much for the privilege. You kind of lucked out by living in one of the cheapest states in the country for property and having a newly built express way that serves your individual needs pretty well though. Plenty of other people in other states are not so lucky.

 

[Coopers]

Correct, it wasn't as easy, but infrastructure progress makes it a viable place to live even for people needing to commute to the CBD. If you are employed, it has never been easier to by a property.

Not sure how you can come to that conclusion.
Houses are clearly a much higher price compared to income than they were say 30 years ago. What other metric can you measure with?

 

[footy4ever]

Not sure how you can come to that conclusion.
Houses are clearly a much higher price compared to income than they were say 30 years ago. What other metric can you measure with?

I haven’t done the math on 30 years ago, but some time ago I posted in another thread about purchasing my first house in the late 70’s. I’d rather be buying a house now.

 

[feenix67]

I haven’t done the math on 30 years ago, but some time ago I posted in another thread about purchasing my first house in the late 70’s. I’d rather be buying a house now.

Affordability criteria right now makes it almost impossible for a single person on the average wage to buy a house above $300k. And a 5 minute glance at the current market tells you that's pretty much everything half decent on the market.

Most non professional people under 30 are not earning enough. Or they are in contract jobs. Or they are part time. Put simply, the bank's aren't lending to them.

 

[Coopers]

I haven’t done the math on 30 years ago, but some time ago I posted in another thread about purchasing my first house in the late 70’s. I’d rather be buying a house now.

I'm not sure how that makes any sense at all, but happy to listen to the logic.

 

[Mr_Moogle]

Most non professional people under 30 are not earning enough. Or they are in contract jobs. Or they are part time. Put simply, the bank's aren't lending to them.

This is the real problem. Way too many people in casual roles cant possibly save the money needed for a deposit. It took me about 2 or 3 years to save for a deposit. This included me living like a huge tightass, eating vegemite sandwiches for lunch, not taking a holiday etc. Even then I still needed a small loan from my folks. If I wasnt working full time, Id have had no chance.

 

[MarcusP2]

Yeah my unit is now positively geared (barely, but it is). So the person renting it could also pay the mortgage. If they could save a deposit.

 

[Sanders]

I bolded the point where it says 'young people want everything now, not work their way up'. Is there any evidence for that statement?

yes. Their complaints about having to do so

 

[Sanders]

Adelaide property market is achievable (I bought a 2 bed unit within 10 k of the CBD as a grad). Somewhere like Melbourne, you are paying $450K for a 2 bed unit in Frankston 50km away.

This wouldn't be so bad if jobs moved with them. Sanders is right in that houses in inner city suburbs aren't necessary (they weren't always inner city)...but that requires investment in public transport, jobs etc so you aren't on an island or spending hours commuting every day. Affordable houses still exist, they're just in locations that can have a significant impact on your quality of life, and even at the low end I would suspect they are more expensive than affordable homes from the 80s and 90s.

where are you assuming people are working and needing to commute to?

 

[Sanders]

I like your Plato comment.

yawn

 

[Sanders]

Affordability criteria right now makes it almost impossible for a single person on the average wage to buy a house above $300k. And a 5 minute glance at the current market tells you that's pretty much everything half decent on the market.

Most non professional people under 30 are not earning enough. Or they are in contract jobs. Or they are part time. Put simply, the bank's aren't lending to them.

when did it become some form of expectation that the average single people under 30 should be able to buy a house?

it never used to be true

 

[Sanders]

This is the real problem. Way too many people in casual roles cant possibly save the money needed for a deposit. It took me about 2 or 3 years to save for a deposit. This included me living like a huge tightass, eating vegemite sandwiches for lunch, not taking a holiday etc. Even then I still needed a small loan from my folks. If I wasnt working full time, Id have had no chance.

that’s normal and not new

 

[Southerntakeover]

that’s normal and not new

The rate of insecure employment within the economy has not been static

 

[Southerntakeover]

providing rental accommodation is very much like any other business for this one reason:

neither is altruistic but they are social goods. Employment and housing needs to be provided

Land lords don't provide houses, construction workers provide houses. Landlords just own them, then charge people for shelter.

 

[CrowsB4hoes]

Land lords don't provide houses, construction workers provide houses. Landlords just own them, then charge people for shelter.

Construction workers don't work for free you know

 

[Sanders]

The rate of insecure employment within the economy has not been static

when people start complaining that casual workers, single, under 30 can’t buy houses, then that is definitely not new

 

[Sanders]

Land lords don't provide houses, construction workers provide houses. Landlords just own them, then charge people for shelter.

construction companies don’t build without sufficient demand and price realisations to make it worthwhile

the GDV of any site is the prime motivator of whether it gets built.

 

[Red mist]

when people start complaining that casual workers, single, under 30 can’t buy houses, then that is definitely not new

When the powers that be create a bubble?

 

[Red mist]

construction companies don’t build without sufficient demand and price realisations to make it worthwhile

the GDV of any site is the prime motivator of whether it gets built.

Concrete is the first performance. I’m hearing hundreds of slabs without framing for timber short for bushfires in vic and NSW last yr.