Social Science Generation X

[IKnowtheDog]

Dilapidated houses are going for seven figures these days.

 

[ioppolo]

Old and dilapidated in sought after suburbs, or brand new and big in new, cookie cutter suburbs. That's all Perth really has to offer these days.

 

[Scotland]

Sometimes you get old and (not necessarily) dilapidated in (not necessarily) sought after suburbs knocked down and replaced with low quality apartments and townhouses, too.

 

[Power Raid]

Looking back Gen X had it good.

Being a young kid we had our BMXs and freedom to play outside.

Our first cars were shit but they were proudly ours.

Most of us remember the 87 crash and graduating into recessions. But geez we were in the right position when the 2003 to 2011 boom hit.

All generations have something to be proud of but we had more opportunities than the boomers and less pressure that social media has. Not to mention we were probably the best looking generation in all history!

 

[ioppolo]

Looking back Gen X had it good.

Being a young kid we had our BMXs and freedom to play outside.

Our first cars were shit but they were proudly ours.

Most of us remember the 87 crash and graduating into recessions. But geez we were in the right position when the 2003 to 2011 boom hit.

All generations have something to be proud of but we had more opportunities than the boomers and less pressure that social media has. Not to mention we were probably the best looking generation in all history!

I know a lot of Gen Xers who have ****ed it all up though

 

[Power Raid]

I know a lot of Gen Xers who have f’ed it all up though

I only have to return to Adelaide, to know how true this statement is

 

[Big Cox 88]

The hassle boomers give (Gen Y) is bullshit.

They could pay 30-50k for a house in suburbs like Bull Creek, Willagee (WA) etc. Which they were all able to sell for close to a million 10 years ago. Lots of them had multiple of these properties that are only 10-15km to the city. Either that or owned huge acreage market gardens in Spearwood which were subdivided and sold off for millions. Now you have to spend at least 650k to get a run down house that needs renovation in those suburbs or spend 400k and live 40km away in a plastic suburb on a 300 square metre block.

We will not get the opportunities they did to capitalise on the real estate explosion and will be prisoners to our mortgages until we can retire and access our super. We are lucky to have mandatory super because the Boomers will drain the government coffers dry with their pensions over the next 10 years.

 

[FRUMPY]

The hassle boomers give (Gen Y) is bullshit.

They could pay 30-50k for a house in suburbs like Bull Creek, Willagee (WA) etc. Which they were all able to sell for close to a million 10 years ago. Lots of them had multiple of these properties that are only 10-15km to the city. Either that or owned huge acreage market gardens in Spearwood which were subdivided and sold off for millions. Now you have to spend at least 650k to get a run down house that needs renovation in those suburbs or spend 400k and live 40km away in a plastic suburb on a 300 square metre block.

We will not get the opportunities they did to capitalise on the real estate explosion and will be prisoners to our mortgages until we can retire and access our super. We are lucky to have mandatory super because the Boomers will drain the government coffers dry with their pensions over the next 10 years.

30-50K wasnt exactly a small amount of money though either - and 15km out of the city probably seemed a fair way out at the time - its all relative. Of course its a lot more to buy a house etc but at the same time there would barely be a person these days between 20-35 years old who hasnt been overseas 5+ times, or had 4 different cars etc. My folks didnt go overseas at all between their 20's and 40's, had the same cars for 10+ years. Worked to save a deposit and then worked to pay off the house. When they purchased, interest rates were crazy high and they barely paid anything off over the first 15-20 years of the loan.

The dumb part of todays society is people still work in the city when they are 40+kms out of the city - choose your own destiny. Get a slightly lesser paying job and save yourself the hassle. I could earn a shitload more working in the city but choose not to as dont want the hassle. We survive ok, we aint rich but we get by.

And the point about their pensions drying the government pensions out - if they are doing so well with their money and wealth then they wont be eligible for the pension.

 

[ioppolo]

Yeah I have no idea what this fascination of working in the city is. Everyone bangs on about commute times to the CBD like that's the only place work is available. If you live in some shithole like Ellenbrook, try to find a workplace around Midland or the city of Swan.

 

[Shell]

I drive half an hour from where i live to work, but i am always driving against the traffic

 

[iluvparis]

30-50K wasnt exactly a small amount of money though either - and 15km out of the city probably seemed a fair way out at the time - its all relative.

That's the point though - it is all relative - and back then houses cost 2-2.5 times average income - now they cost 4.5-5.5 times.

 

[Hawk Dork]

I drive half an hour from where i live to work, but i am always driving against the traffic

One of the best bits of living in Port Melb you left as every one was coming and came home as everyone was leaving
Being a dead end meant no through traffic either

 

[FRUMPY]

That's the point though - it is all relative - and back then houses cost 2-2.5 times average income - now they cost 4.5-5.5 times.

Some houses yes, other houses no. There are affordable houses out there if people really want to own a home. small steps.

And you get a loan and your paying 3% interest rates - but people would rather pay $450 a month rent etc.

 

[Shell]

One of the best bits of living in Port Melb you left as every one was coming and came home as everyone was leaving
Being a dead end meant no through traffic either

Hey my dad worked in Port Melbourne.

/oh u said living nm

 

[Hawk Dork]

Hey my dad worked in Port Melbourne.

/oh u said living nm

I probably passed him on the way out and in

 

[Shell]

I probably passed him on the way out and in

He was an engineer.

Dunno what company.

 

[craigos]

Really feel for the next generation. It's going to take a recession to happen if there is even a chance of the average kid being able to buy their own home.

No wage growth. No jobs in regional areas.

 

[FRUMPY]

Really feel for the next generation. It's going to take a recession to happen if there is even a chance of the average kid being able to buy their own home.

No wage growth. No jobs in regional areas.

If their parents instill the right values and how to save money then it wont be as hard as some make it out.

 

[craigos]

If their parents instill the right values and how to save money then it wont be as hard as some make it out.

ok boomer

 

[FRUMPY]

ok boomer

born 1980's my friend

 

[burge13]

If basic financial planning was taught in schools it'd go a long way. People choosing to have kids before buying a house, for example, you're stuck in rentals forever due to not saving first. Bank loans for expensive first cars is idiotic but so many do it. No one forces you to do these things but it sets you back in your journey to buying a house.

Add to that people want a mansion close to the CBD now instead of a unit 30km away to get started.

Boomers blame younger generations holidaying and expensive breakfasts for their inability to buy a house but you can't blame someone for living a little. You can, however, point out incredibly dumb financial decisions. Take your lunch to work, catch public transport, don't buy coffee every day. Well done, you're $100 a week better off. $5K a year. Simple as can be. Now don't buy brand name clothes (who cares if it's Calvin Klein ffs) and you've saved probably another $2K.

 

[FRUMPY]

A friend on instagram posts stories of her day - mostly consisting of 3 or 4 coffees a day, eating breakfast and/or lunch at cafes 3 or 4 times a week etc. She would be mid to late 20's and studying to be a teacher (yep one of those who chose her career late - teaching as a fall back). Im guessing she wouldnt have much savings

 

[burge13]

One day she will wake up and realize how much she's wasted. Unless she's hot and finds a rich guy in which case, she won't and it's now his problem.

I used to work with a bloke who complains about money occasionally but he and his mrs often go to expensive places for dinner and rack up $250+ bills. He buys a minimum of 2 coffees a day and they both drive to work separately and park in the city so probably $15 each a day. Financial planning shouldn't even require a degree anymore if this is the financial literacy of our country.

 

[Scotland]

Really feel for the next generation. It's going to take a recession to happen if there is even a chance of the average kid being able to buy their own home.

No wage growth. No jobs in regional areas.

Interest rates are having some impact. The last time they went up was 2010 and the cash rate was 4.75%. It's now 0.75%.

If you had a $500,000 home loan in 2010 you were probably paying around 7% interest and $767 a week. The same loan now you can easily get 3% and $486 a week. Both based on a 30 year P&I term. That's almost a $300 saving in the hand per week which is not insignificant. The other effect being that if you banks wouldn't lend you money at 7% (+/- 2-3% float) they might lend you money at 3% (+/- 2-3% float). Boomers always beat on about record high interest rates, but they were around for a short time when principals were low.

The overall effect of such low rates I'm not sure about. If you have savings you get nothing, and while the Keynesians will want everyone to spend that extra $300 a week to boost the economy a lot of people (me included) will look at any saving as a short term thing and treat any saving as something to put away for a rainy day or pay down debt. If you can afford $x per week on a 30 year loan term why not use that $x per week to shorten it to 25 or 20 or whatever?

 

[Scotland]

I used to work with a bloke who complains about money occasionally but he and his mrs often go to expensive places for dinner and rack up $250+ bills. He buys a minimum of 2 coffees a day and they both drive to work separately and park in the city so probably $15 each a day. Financial planning shouldn't even require a degree anymore if this is the financial literacy of our country.

This isn't generational. Some people are just useless with money. I've got a mate that would earn comfortably more than me and whatever comes in goes out one way or another. Big house, nice car, expensive holidays, meals etc. etc. Doesn't come from a rich family and has a great work ethic, just manages to spend like a drunken sailor.