The banks have a lot to answer for here. Allowing people to borrow so freely, especially those who already have a home, and are looking to buy investment property, they have created a crisis of housing affordability, in the name of increasing their profits. This is particularly horrific, considering the GFC only happened 15 years ago - within living memory. How were they allowed to continue servicing these kinds of loans? The regulators and government who should have been monitoring this were asleep at the wheel - the regulator because it's basically toothless, and the Coalition government, who knew that rising house prices would go down well with their largely enfranchised base. Now we are reaping the rewards for the greed of the banks and government.
banks are much more careful these days, subprime loans no longer exist. Not sure what you're talking about. This woman also got an adjustable rate mortgage for some reason, God knows why. That was STUPID. You ALWAYS get a fixed rate loan.
100% spot on. Remember this at the polls when voting. The banks are private, they'll do what is in their best interest. This crisis is the governments and central banks doing. Their inaction has created massive moral hazard and emboldened Australians to take out absurd mortgages. Everyone knew there was an issue by early to mid 2021 but gov stood by and did nothing to discourage the speculation. Who should pay for this now? The speculators or the next generation of young Australians? I know who it should be but our government has a habit of protecting the speculators.
' The regulators and government who should have been monitoring this were asleep at the wheel ' - no, they were sniffing cocaine during their meetings.
The thing is the idea there is actually a shortage is a lie. The major cities have a 20 - 25% unoccupied rate. It's the concept of a house as an investment and not a place to live that has caused the shortage. What we have is a lack of affordable housing and a bunch of people buying land as an investment not to live in. On top of that we have ridiculously high rents.
@@bronze2956 I’d say it’s both. We don’t exactly build the best apartments in this country. AirBnb is taking over regional areas forcing people who rent to live on the streets or move elsewhere. Housing security is becoming an issue in this country.
@@Spacemonkeymojo Yes, I think area has a great deal to do with it. Jobs+city=sky high rent, empty units, developers and owners raking in the big bucks; regional+low availiability but also high affordabilty = no jobs. I do believe housing security is a very big problem and the feeling of insecurity that so many people are walking around with, is also having huge impacts on mental well being. Jobs are also more insecure than they have ever been. Gone are the days where you got a job as a postie, staying in it for life, nice and secure, and afforded a house, and family with a stay at home mum and cruised into a nice retirement, maybe with a holiday home along the way. That is an Aussie dream long since dead.
Interest rates are the least of our economic problems.The destruction of small business and dominance of large corporations paying little tax and sending profits overseas is the real elephant in the room.
This is totally misleading - interest rates have ALREADY gone up. Most people are on fixed rates now. Fixed rates for NEW mortgages have gone up 7 times since November 2021. They were 1.99% for a 4 year fixed mortgage then and it’s close to 3.99% now. That’s a 30% increase in mortgage payments. That is before the RBA moves. Please educate people that this has already happened.
I’m willing to bet the majority of Australians who have purchased property in the past several years are clueless about macroeconomics and even the value of their money. Otherwise house prices wouldn’t be so stupidly high.
Renovating was a bad idea. My bathroom and kitchen are functional but far from pretty. Having a buffer on the home loan was more important for me. My car looks like a dropped pie but own it. When your rates go up I'm sure the new owner of your home will love the renovations 👍
Soon people will realize the 'Joneses' they SHOULD have been trying to keep up with are people like you Andrew, those who make do with they have and live within their means.
People who take out $1m loans for crappy houses on a small patch of land: “We’re millionaire homeowners now!” People with a brain: “You have $800k debt and $200k equity, you only own the master bedroom.”
And if interest rates go up, you might own a couple of bricks because your equity evaporated. And might disappear for years, and it will only take one big fail health otherwise to throw a lot of dreams out on the street. It's happened to us twice.
@@realmoa You didn’t even talk about the principal. Also rates aren’t gonna stay low. Absolutely clueless like most morons who buy and invest in property lmao. You think property will keep growing when rates are rock bottom? Lmao. Clueless. Too many financially stupid people in this country. Also what are you gonna do with a million dollar house living in it? You gonna sell it and move elsewhere? How are you gonna realise that gain? Take out a reverse mortgage and die without passing anything to your kids? Seriously people who think property is a great investment are so stupid and lazy. That’s why renting is so bad in this country.
Still better than renting. Would rather be building my own equity paying off a loan than losing a good part of my salary to parasites. Complete cash sink
What a colossal f*up. APRA should have stepped in years ago to reign in on the debt. Now it has come down to saving property market or saving economy. Who will RBA and the Govt choose?
The government and the RBA will not allow for the property market to crash. They have to much vested interest in keeping it propped up. With an upcoming election, they will hold off on any rate rises. They are currently handing out " free" cash like it's going out of fashion. I wonder where they found the funds for that.....
Sadly cheaper housing prices will make it easier to live and afford, but in order to be affordable we need house prices to drop and many people will suffer. As a millennial looking to buy, I’m extremely disenfranchised with how overpriced houses are. Seeing it as place to live rather than an asset is what matters most to me. We’re entering into a phase where it’s lose lose between those who already own a property and those who want to.
In that case the people who suffer simply overpaid for property. That’s their fault, why should we let future generations suffer because of their stupidity? Prices need to be reset. I don’t care if people suffer, they willingly purchased expensive property assuming rates would be low forever. They basically didn’t even consider that as a risk whatsoever. We shouldn’t take care of these fools. Also, I bet you these people made up lies about their expenditures.
The problem is, as a millennial, you only ever consider living in a handful suburbs, and so does every one of your fellow millennials. Since you'll never make enough money to buy there, you assume it's impossible to ever buy somewhere to live.
@@Spacemonkeymojo Very few places will go down in value. You'll be lucky to find them plateau. You might not care if people suffer, but guess who does care? Politicians. Anything that affects the majority of the voter base will not be touched.
@@Ausf what a crock of BS. What you are basically saying is that us Millennials should move hundreds of kilometres away from where we live, where we grew up and where our families are in order to afford to live. More to the point, do you fail to comprehend that areas where housing is affordable tend to have SFA jobs?
@@Spacemonkeymojo exactly, a house bought for say $250,000 back 15-20 years ago would potentially be worth at least double or more now but what's the point in selling when everywhere else has also gone up anyway....
Phillip Lowe should be audited. I just want to make sure he isn’t getting paid under the table to keep rates low by LNP MPs. We need more transparency when it comes to roles like his. The government also wants to allow people to use more super to pay for a house. Not only will that just act to increase house prices, but the money withdrawn will not be able to compound over decades to build up a nice nest egg. These people who use super to pay for a house will be asset rich but cash poor in retirement and as a result will need to rely on the pension. It’s all just so stupid and shortsighted. It makes me hate what this country has become, or maybe it was always like this.
Politicians don’t care about what happens 20 years down the track, they only care how things look on paper now (whilst they are still in office). It’s the politicians in 20 years time problem. Same with big business.
If you’re a prospective first-time homebuyer hoping (or praying) home prices will decline in 2022, don’t count on it. If people are waiting for a price to decline, well, it’s not going to happen. Heading into the spring of 2022, mortgage rates have increased over a full percentage point and while purchase demand has cooled, it remains firm. Supply remains near record lows, so home price growth is expected to remain high through the spring homebuying season before cooling off later this year as mortgage rates continue to rise. Investing in REITs will be a right decision as it's also included in a growing number of defined-benefit and defined-contribution investment plans
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@Colombo Evelyn Entering an investment on your own can occasionally require much more specialized knowledge. Deciding between debt and equity implies a considerably advanced level of investment knowledge. I'll suggest you get a financial professional with intelligent strategies who'll help you create a suitable plan to maximizing potential performance and minimizing risk.
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I don't own a car, I don't have a mortgage and I pay ~$70 a week for food. I do have a student loan debt but the good thing about that is it's made me not want to get a massive mortgage
Does the decision makers understand their job is to support Australians? When will we get leadership with courage to stand for the people who back their frivolous spending. Our jobs economy and national security should not be gambled in high risk bets.
@@godamid4889 privatise the profits (including from dead Australians), socialise the losses. Federal ICAC needed. Bring on the postal bank. Owned by us for us. Ban all corporate donations in politics.
@@nottenvironmental6208 the sale of the Commonwealth seems not so crash hot these days. Still, it's easy enough to give the finger to the IMF and set up another. It's going to happen, or the foreign owners will continue to dictate our policy.
I don’t think it’ll be for long. Wages remain flat. People can only borrow so much. Where do banks think households will suddenly find this extra money? If rates go up the economy will turn sluggish again once people either have no real disposable income or choose to save.
Interesting statistic to remember is that the property market is worth around 9 trillion and debt owed by Australians it 2 trillion, LVR of 22% is very conservative overall.. Also remember when a home buyer applies for a home loan interest rate rises are factored in to their application. In Australia banks will not give someone a loan if they are not able to comfortably afford it so majority of homeowners can afford to hold their property when push comes to shove.. interest rate rises, property prices rising and then levelling out for few years all part of the cycle nothing new in the big picture over 20 years
most of banks' profit come from mortgage. when interest rates are so low, in order to generate the same amount of profit, banks will push more borrowings. australians are already used to good times. when we face a little bit of bump in life, reserve bank is so quickly reacting by reducing the interest rates.
Yeah they always show in these type of episodes non struggling families. Oh boo hoo, kids might need to skip swimming lessons. If I’d have it a guess most households would do this and reasses household costs, but I’d hardly call skipping swimming lessons earth shattering and being a bit worried about chipping into savings for renovations.
Great piece. Hopefully it puts things in context for the Australian population. We either add value to resources so the world wants to buy the fruits of everyone’s labour or we start taxing the land we dig up and sell overseas. Only to buy back later. Paying for improvements/manufacturing plus transport costs will always make us the losers.
I'd rather a $120,000 and 12% interest mortgage than a $900,000 mortgage with no interest at all. People whining about high interest on their past pittance of a principal are full of shit and they know it.
Exactly, if the prices are lower you actually get the opportunity to save up and pay off a decent chunk up front, when I purchased a house I saved for 2 years and paid off nearly 40% straight off the bat, that would be impossible now. Saving for 2 years would be less than 20% of the value now I feel for a comparable property.
@@legallyfree2955 I'm happy to hear someone honest about it.... The generation who were in that opportunistic period have exaggerated everything to appear clever in their investments and hard working to their children. They forget we have calculators and everything is documented and can be worked out quite easily.
Again. Economic Suicide. Stop negative gearing Stop easy money lending Our system makes it so easy to build and lockup wealth in property for investment. But due to this we are now a very expensive society. We should encourage investment in business and other activities that grow our GDP and exportable goods and services and keeping those competitive with the world. At the moment -> Expensive cost of living = expensive workforce = less profitable business = jobs and money going over seas = Australia steadily going down the shit hole. To fix our economy. Get rid of negative gearing Encourage investment in business. Make us more competitive in goods and services in the world stage.
The various reserve banks around the world, including ours, have a lot to answer for with these insane near zero percent interest rate targets. 3 percent used to be emergency levels, 3 percent! Current near zero levels have resulted in crazy residential market distortions, gargantuan housing debt levels, massive losses to savers, and what looks a lot like intergenerational theft in the residential property market.
Oh dear her kids might not get swimming lessons and rebudget while she does renovations (hardly going to not be able to pay her mortgage by the sounds of it) meanwhile some people can barely afford rent. If this is struggling for Australians on a mortgage then maybe we don’t have an issue after all. I’d hardly call rebudgeting like that a struggle.
@@minorcadence1 sorry but swimming lessons isn’t a vital thing when everything is going to shit (sure it’s important in some regards we don’t want kids drowning but it’s something that can be put on hold). I run a business too and I’m betting that my product will not be on most peoples budgeting list. I have to be realistic of where peoples money will be focused on when budgets get tougher.
So reitirees are at the mercy of the markets, and homeowners are struggling to pay for their current standard of living due to the markets. This article forgot to mention that people on the dole are also getting their rent raised and have no way of getting more money when the government refuses to say if the dole is enough to live on. A.G.
Abolish the property market. Or offer rent to own HECS style government debts for first homebuyers and for those that will lose out from falling housing prices
The government is offering billions of cheap carbon credits to business at tax payer expense. Surely they can offer the same cheap finance to the people they serve?
@@godamid4889 carbon credits are a way to incentivise transition from polluting factors, and is a good thing. Government can end the subsidies for mining companies though to help offer the same financial assistance for the people 😊
@@PapaphobiaPictures carbon credits allow businesses to pollute by purchasing them. They are sold by companies that reduce or have a negative carbon footprint, and are bought by those who have a positive carbon footprint. When the government undercuts the market by $45 dollars or so and sells them at $12 dollars, they are manipulating the market and losing the tax payer that $45 dollars per credit in profit. The carbon credits are artificially devalued and the incentive to reduce pollution is reduced, because it won't cost a polluting business an arm and a leg to buy it's responsibility away. But you knew that, right?
@@godamid4889 well yeah, but it also offers the incentive to both reduce emissions where possible- so as to not have to pay to offset - and incentivise more green industry
@@PapaphobiaPictures I'm not sure you are getting the full extent of the picture. We are being actively divested of sovereign wealth via the carbon credits by the robber barons. In this theft the carbon credits lose both monetary value and environmental value. Move past the binary view that carbon credits are good or bad. Carbon credits are a tool - it's how they are used that makes them good or bad. They are currently very bad.
I hope they increase the interest rates to atleast 7%, so the cash rate goes up and inflation stabilises. Help the people saving for a better quality life as opposed to the greedy investors buying property left, right & centre.
So where do you live while saving up for a house? You'll have no choice but to rent. Which is even worse than paying off a mortgage. Kind of shit attitude to have.
It doesn't matter what the interest rate will rise, the house prices are not going down, they might flatline though. The government is depending on high immigrants who will be brining here all the money they can find as they are moving to Australia permanently. Plus stamp duty puts a lot of money in government coffers. This government dumb and leads a ostrich policy. They should develop regional areas with better infrastructure, jobs, high speed internet so those areas can rise and not just mel and Sydney, but the government wants ppl to work in mel or Sydney cbd only hence the crazy prices aswell
@@Lycuse I don't live in Australia, we have multiple investment properties in Australia hence the interest in the market. Also you should tell your government to stop inviting high immigration and also stop negative gearing, it might help you guys. Your government has left nothing for the first home buyers. If the property prices go down due to a bit of interest rate rise we will buy more properties and increase our portfolio and if they dont fall our current properties will rise while being cash flow +
lol... You mean increasing debt per capita to 200% while stagnating income growth is a major economic problem.... I wonder which political party could be blamed for poor governance. Liberals : 1996 - 2007 (13 years) Labor : 2007-2013 (6 years) Liberals : 2013-2022. (9 years)
Indeed. I'm trying to work out why Aussies keep voting for the Liberals. I'm assuming they are aspirational. I.e. they all think they're going to be rich.
No one seems to winge about real estate commissions, you need to make $50-100K profit just to break even, real estate commissions can be much as stamp duty, I reckon commissions should be capped at $5000 per house. It's not just banks hurting us, it's fees too
I am already enrolled as a student at a uni in Queensland. Can someone here tell me what is an average of living cost that I have to prepare for a month. Is it enough if I only allocate at 1.850 AUD for a month? Thanks for the answer guys.
That will be tight but doable. You will need share house accommodation of course. With frugal spending, you can actually still enjoy living. You should be able to go out occasionally, and all that.
As a young person like the old retirees who don’t have a mortgage I really thinking rising interest rate would help improve my bank savings. I would have more from the money I made. Win win
I work at a place where people are now doing more hours and more days in order to pay for the "high cost of living", but to spend your paycheck week to week on frivolous things is only fuelling inflation. We all (as a country) need an economic education on how we can reduce the severity of the cost pressures. I'm not sure these generations can do it... they've never had hard times and as a result are so soft and silly.
The Australian interest rates will rise around 2% more than the interbank rate set by the New York Federal Reserve Bank. This is what happens. We could replace the Reserve Bank of Australia with an application that monitors the rate set in America and another application that creates new Australian dollars when the government needs more money and won’t raise taxes.
One wonders if this is a consequence of human growth. For the last 100 years the population globally and domestically has increased massively. Anyone who has had a basic induction into biology would be well versed on the idea of population carrying capacity, humans have been able to continually increase this via means such as medicine, education, etc. I do however wonder what the future has in hold, perhaps a third world war, a mass famine/pandemic, who really knows. I do find comfort in the fact that the show must go on, humans or not.
A friend of mine was mad keen to buy his own place last year, with the hundred grand they had saved... all their savings went to deposit and now have a standard sized mortgage - she works a factory job, he was unemployed, they lived with his mother beforehand, rent-free for years. I wonder how they are going to get along now with 0.25% increases each month, every month...
The discovery of oil peaked in 1964 Last year only 4.7 billion barrels were discovered Mankind consumes 3 billion barrels a month 36 billion barrels PA So 4.7 billion is 31.3 billion barrels short Mankind cannot pump undiscovered oil
Increase in interest rates is not gonna fix the underlying problem. First home owners - I wish you luck. Rate rises will hinder your chances even more. And get this over your heads. Interest rate hikes doesnt equal house price drop.
Government keeps lower interest rate to boost activity, it's understandable. The government should also see the steep increase in house prices and potential increase in interest rate. As a responsible government it should 1) warn home buyers of the risk, make sure they do not over gear, 2) instruct the financial institutions to be more cautious, meaning make sure that borrowers would still be able to repay their mortgages even when interest rate increase 2% in the next 24 months, with due consideration on inflation rate. I am certain that inflation has not been duly included in the banks' calculation.
The system is broken, we need to not have a system where the rich can actually make money of interest rates rising and the poor can lose from it. While interest on debt seems to make sense, the more I think about it the more it just seems like something to keep poor people from breaking out of their situation. Should someone who has negative money (debt) be charged more money, while someone who has positive money (savings) be making more money? The system is broken it keeps the rich rich and the poor poor.
You can thank the LNP for all this. Everyone who complains that house prices are too high and voted for the LNP last election should not be allowed to live in this country, they should be shipped off to a country where intelligence is not required.
@@Spacemonkeymojo as awful as LNP is and ALP would have improved thing they wouldn't have fixed the issues. It's capitalism and dodgy banking that is the cause, shipping people away for not understanding politics or viewing it like a football team that you follow for life is not good. Instead it is a sign of failing education system, not a fault of the individuals.
Interest rates need to rise. Using housing market like a bank is immoral. It isn't fair people pay such high inflation to protect others housing finance
Thr real reason for this financial stress is the structure of the financial system. Debt needs to inflate to hold up the system. It's an exponential debt based system, a ponzi scheme of epic proportions. Mathematically, it was also going to fail since the world left the gold standard. The failure is getting closer. Uncertain times ahead. Buy food.
Could we have an angle on the majority of Australians who are single and rent. We are the people that will be paying for the greed of the indebted home owners.
Here's an angle for you, my own experience: In late Dec 2021, my landlord sent me a rent increase to come into effect in 28 days... late Jan 2022. The amount was 20.5% more than current. I google accommodation CPI and was met with a 5.3% figure... I complained the increase was excessive, and my complaint would be mediated by the Residential Tenancies Authority (QLD). Although I lodged my complaint within a couple of hours of receiving it, I didn't hear anything from RTA and had to make a decision at least 7 days prior (which I decided to vacate, not out of financial burden, but out of principle of why could someone treat a good tenant this way). The RTA finally called on the Tuesday after my weekend move-out process had already happened, which I gave them some "very honest" feedback ☹️ Since that was late Jan / Early Feb, I have just "celebrated" six months of homelessness. My car is my refuge, my roof over my head for the past half-year.
Would an alternative to RBA interest rates going up is increasing the overall income tax rate above $80K? I feel that might help slow down inflation while assisting low incomes in keeping up with cost of living without squeezing every homeowner around.
Were is the lady from Igleburns Husband? If she does have a husband why she saying she is paying for groceries etc, then say we have a mortgage? Its not hard to teach your children to swim by yourself.
You can literally print infinite amount of fiat, set the inflation number and the interest rates don’t let them fool you into controlling your finances and determine how you live do not put up with poverty and inflation know your human rights! Be sovereign and have liberty , the system is broken we need a complete social democratic reform of our financial system with crypto currency on the blockchain to combat inflation and use innovation to our advantage to live a luxurious life. Who’s with me!! 🚀🚀🚀
Buy what property you can afford, 20 years population will likely grow a lot. Gap between rich and poor will be unbelievable. Love to sell price drop 50% to 100% so that the next generation can buy. Highly unlikely.
With a second baby on the way as a single parent I pinch every penny. The last thing you want is having debt on your name. I had to close my credit card account because I couldn't afford the payments anymore. My daughter doesn't attend activities but does that make me a bad parent? No it doesn't because we all know how much all this things cost especially if your a single parent and everything is on you to pay for and you don't have someone else helping financially. I can't even remember the last time I shopped for myself because you only think of the kids and alot of things I've had to cut back on.
Really can’t empathise with the wealthy old woman who lives in Manly and has a Burberry face mask 😂 And yeah tbh thinking about paying for swimming lessons or adjusting the renovation budget is also not a real struggle lol
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Just maybe if you and all future Australian children were given in high school the understand of economics,stock markets,bonds,interest rates and charting if you may have been armed with the desired ability to choose from a different outlook? Ho and at the same time through in learning to drive a motor vehicle correctly
I blame lifestyle here. She wants to live as close to the city as possible. Well its almost impossible to afford something like this. Do what I did, buy a house 35km out of the CBD, a new estate, I have a double story house, with all the bells and whistles and I only paid 500k. (Rockbank Melbourne) If she is willing to make this sacrifice then she can have a house too. But 9 times out of 10 people are not prepared to make this sacrifice. And i only earn a peasantswage of 60k a year. Yes I have kids and a wife who works part time.
How this is a big shock to people still blows my mind…. How else can they push a one world economy/ government? We are in end times dear brothers and sisters. All it takes is belief and you will be saved. Accept and admit you’re a sinner who has fallen short and are not great or perfect by any means. Believe in your heart that Jesus died and shed His blood on the cross for your sins as a sacrifice, that you may have eternal life. That He died and rose again on the third day. Believe with your heart and confess with the mouth these things and you shall receive the greatest Gift. God bless
The banks have a lot to answer for here. Allowing people to borrow so freely, especially those who already have a home, and are looking to buy investment property, they have created a crisis of housing affordability, in the name of increasing their profits. This is particularly horrific, considering the GFC only happened 15 years ago - within living memory. How were they allowed to continue servicing these kinds of loans? The regulators and government who should have been monitoring this were asleep at the wheel - the regulator because it's basically toothless, and the Coalition government, who knew that rising house prices would go down well with their largely enfranchised base. Now we are reaping the rewards for the greed of the banks and government.
banks are much more careful these days, subprime loans no longer exist. Not sure what you're talking about. This woman also got an adjustable rate mortgage for some reason, God knows why. That was STUPID. You ALWAYS get a fixed rate loan.
100% spot on. Remember this at the polls when voting.
The banks are private, they'll do what is in their best interest. This crisis is the governments and central banks doing. Their inaction has created massive moral hazard and emboldened Australians to take out absurd mortgages. Everyone knew there was an issue by early to mid 2021 but gov stood by and did nothing to discourage the speculation. Who should pay for this now? The speculators or the next generation of young Australians? I know who it should be but our government has a habit of protecting the speculators.
@@blank.9301 Lol, I haven't had a fixed rate for the last 15 years. Done a lot better on a variable. Do you work for a bank?
YEAH idiots going into dept without even having a job
' The regulators and government who should have been monitoring this were asleep at the wheel ' - no, they were sniffing cocaine during their meetings.
It’s so unbelievable that such a vast country would have a housing problem.
When it’s run by idiots called the LNP it’s not really surprising.
It's not a housing problem - it's an affordability problem.
The thing is the idea there is actually a shortage is a lie. The major cities have a 20 - 25% unoccupied rate. It's the concept of a house as an investment and not a place to live that has caused the shortage. What we have is a lack of affordable housing and a bunch of people buying land as an investment not to live in. On top of that we have ridiculously high rents.
@@bronze2956 I’d say it’s both. We don’t exactly build the best apartments in this country. AirBnb is taking over regional areas forcing people who rent to live on the streets or move elsewhere.
Housing security is becoming an issue in this country.
@@Spacemonkeymojo Yes, I think area has a great deal to do with it. Jobs+city=sky high rent, empty units, developers and owners raking in the big bucks; regional+low availiability but also high affordabilty = no jobs. I do believe housing security is a very big problem and the feeling of insecurity that so many people are walking around with, is also having huge impacts on mental well being. Jobs are also more insecure than they have ever been. Gone are the days where you got a job as a postie, staying in it for life, nice and secure, and afforded a house, and family with a stay at home mum and cruised into a nice retirement, maybe with a holiday home along the way. That is an Aussie dream long since dead.
>I'm putting money away.
>I'm renovating.
Pick one.
Haha straight up; zero sympathy
Interest rates are the least of our economic problems.The destruction of small business and dominance of large corporations paying little tax and sending profits overseas is the real elephant in the room.
This is totally misleading - interest rates have ALREADY gone up. Most people are on fixed rates now. Fixed rates for NEW mortgages have gone up 7 times since November 2021. They were 1.99% for a 4 year fixed mortgage then and it’s close to 3.99% now. That’s a 30% increase in mortgage payments. That is before the RBA moves. Please educate people that this has already happened.
I’m willing to bet the majority of Australians who have purchased property in the past several years are clueless about macroeconomics and even the value of their money. Otherwise house prices wouldn’t be so stupidly high.
You're right, that's why there's financial planners...
You know there is a housing bubble when people will pay anything for a house.
Renovating was a bad idea.
My bathroom and kitchen are functional but far from pretty.
Having a buffer on the home loan was more important for me.
My car looks like a dropped pie but own it. When your rates go up I'm sure the new owner of your home will love the renovations 👍
Soon people will realize the 'Joneses' they SHOULD have been trying to keep up with are people like you Andrew, those who make do with they have and live within their means.
Never renovate a house you can’t badly afford.
I still Drive a Tarago that’s 13 yo with 400,000 kms💔❤️ I’ll drive it till it dies. It’s served me well❤️
People who take out $1m loans for crappy houses on a small patch of land: “We’re millionaire homeowners now!”
People with a brain: “You have $800k debt and $200k equity, you only own the master bedroom.”
And if interest rates go up, you might own a couple of bricks because your equity evaporated. And might disappear for years, and it will only take one big fail health otherwise to throw a lot of dreams out on the street. It's happened to us twice.
Servicing $16,000 in interest but winning $40,000 in capital gains (based on YoY 5% growth)
K.
@@realmoa You didn’t even talk about the principal. Also rates aren’t gonna stay low. Absolutely clueless like most morons who buy and invest in property lmao.
You think property will keep growing when rates are rock bottom? Lmao. Clueless. Too many financially stupid people in this country.
Also what are you gonna do with a million dollar house living in it? You gonna sell it and move elsewhere? How are you gonna realise that gain? Take out a reverse mortgage and die without passing anything to your kids? Seriously people who think property is a great investment are so stupid and lazy. That’s why renting is so bad in this country.
Some only own the shit house...
Still better than renting. Would rather be building my own equity paying off a loan than losing a good part of my salary to parasites. Complete cash sink
I hate this world.
What a colossal f*up. APRA should have stepped in years ago to reign in on the debt.
Now it has come down to saving property market or saving economy. Who will RBA and the Govt choose?
the RBA has already made their choice, they will save the property market. get ready for $10 a litre petrol and $20 for a coffee
@@lmimssoi6978 Meh, prices will always fall in term of Gold and Silver. Only rise in worthless australian pesos, sorry I mean dollars.
@@ewtwetrwerwteet 👍
The government and the RBA will not allow for the property market to crash. They have to much vested interest in keeping it propped up. With an upcoming election, they will hold off on any rate rises. They are currently handing out " free" cash like it's going out of fashion. I wonder where they found the funds for that.....
No sympathy. You kept up with the Jones'. Now it's time to feel the consequences.
Yup. Don’t need new everything every year or 2 🤦🏻♀️
Sadly cheaper housing prices will make it easier to live and afford, but in order to be affordable we need house prices to drop and many people will suffer.
As a millennial looking to buy, I’m extremely disenfranchised with how overpriced houses are. Seeing it as place to live rather than an asset is what matters most to me.
We’re entering into a phase where it’s lose lose between those who already own a property and those who want to.
In that case the people who suffer simply overpaid for property. That’s their fault, why should we let future generations suffer because of their stupidity?
Prices need to be reset. I don’t care if people suffer, they willingly purchased expensive property assuming rates would be low forever. They basically didn’t even consider that as a risk whatsoever. We shouldn’t take care of these fools.
Also, I bet you these people made up lies about their expenditures.
The problem is, as a millennial, you only ever consider living in a handful suburbs, and so does every one of your fellow millennials. Since you'll never make enough money to buy there, you assume it's impossible to ever buy somewhere to live.
@@Spacemonkeymojo Very few places will go down in value. You'll be lucky to find them plateau. You might not care if people suffer, but guess who does care? Politicians. Anything that affects the majority of the voter base will not be touched.
@@Ausf what a crock of BS. What you are basically saying is that us Millennials should move hundreds of kilometres away from where we live, where we grew up and where our families are in order to afford to live. More to the point, do you fail to comprehend that areas where housing is affordable tend to have SFA jobs?
@@Spacemonkeymojo exactly, a house bought for say $250,000 back 15-20 years ago would potentially be worth at least double or more now but what's the point in selling when everywhere else has also gone up anyway....
Phillip Lowe should be audited. I just want to make sure he isn’t getting paid under the table to keep rates low by LNP MPs. We need more transparency when it comes to roles like his.
The government also wants to allow people to use more super to pay for a house. Not only will that just act to increase house prices, but the money withdrawn will not be able to compound over decades to build up a nice nest egg. These people who use super to pay for a house will be asset rich but cash poor in retirement and as a result will need to rely on the pension. It’s all just so stupid and shortsighted. It makes me hate what this country has become, or maybe it was always like this.
Politicians don’t care about what happens 20 years down the track, they only care how things look on paper now (whilst they are still in office).
It’s the politicians in 20 years time problem.
Same with big business.
And then when they retire the house will be part of the assets test and they won't be eligible.
Agree with you he should be investigated
@@joek292 they’ll have to rent out a room and live with strangers to get income hahaha.
they don't care bc the LNP Coalition is just setting up heaps of debt for Labor to inherit
If you’re a prospective first-time homebuyer hoping (or praying) home prices will decline in 2022, don’t count on it. If people are waiting for a price to decline, well, it’s not going to happen. Heading into the spring of 2022, mortgage rates have increased over a full percentage point and while purchase demand has cooled, it remains firm. Supply remains near record lows, so home price growth is expected to remain high through the spring homebuying season before cooling off later this year as mortgage rates continue to rise.
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I don't own a car, I don't have a mortgage and I pay ~$70 a week for food. I do have a student loan debt but the good thing about that is it's made me not want to get a massive mortgage
Out of interest, what are you eating for $70 a week?
@@1w561 not red meat 😅
You live off someone else
I’d rather have a mortgage than student loan debt.
Lol $70… that must be a lot of toast and 2 minute noodles
Remember that the answer to the cost of living is to go easy on the smashed avocados.
Raise the rates then. Inflation is worse.
Does the decision makers understand their job is to support Australians? When will we get leadership with courage to stand for the people who back their frivolous spending. Our jobs economy and national security should not be gambled in high risk bets.
Ask the Libs how the banking royal commission worked out. One year of tighter lending, then it's all forgotten.
@@godamid4889 privatise the profits (including from dead Australians), socialise the losses. Federal ICAC needed. Bring on the postal bank. Owned by us for us. Ban all corporate donations in politics.
@@nottenvironmental6208 the sale of the Commonwealth seems not so crash hot these days.
Still, it's easy enough to give the finger to the IMF and set up another. It's going to happen, or the foreign owners will continue to dictate our policy.
I don’t think it’ll be for long. Wages remain flat. People can only borrow so much. Where do banks think households will suddenly find this extra money? If rates go up the economy will turn sluggish again once people either have no real disposable income or choose to save.
If interests rates went up, her landlord would probably put the rent up.
Interesting statistic to remember is that the property market is worth around 9 trillion and debt owed by Australians it 2 trillion, LVR of 22% is very conservative overall.. Also remember when a home buyer applies for a home loan interest rate rises are factored in to their application. In Australia banks will not give someone a loan if they are not able to comfortably afford it so majority of homeowners can afford to hold their property when push comes to shove.. interest rate rises, property prices rising and then levelling out for few years all part of the cycle nothing new in the big picture over 20 years
What about the amount of money printed here in Australia.. does that have nothing to do with inflation?....
Considering how ridiculously low they are, I am going to assume they will rise slightly above ridiculously low, but nowhere near the 1970-2000 rates.
they tend to follow us fed. no way they can have % rates that high. zero chance
You are conditioned to think interest rates are low
@@neo-vj4zq interest real rates are negetive
most of banks' profit come from mortgage. when interest rates are so low, in order to generate the same amount of profit, banks will push more borrowings. australians are already used to good times. when we face a little bit of bump in life, reserve bank is so quickly reacting by reducing the interest rates.
Giant house, big suv and whinging about costs… Ummm…
Yeah they always show in these type of episodes non struggling families. Oh boo hoo, kids might need to skip swimming lessons. If I’d have it a guess most households would do this and reasses household costs, but I’d hardly call skipping swimming lessons earth shattering and being a bit worried about chipping into savings for renovations.
I seriously hope these big fuel prices spell the end of SUVs. I doubt it will, but we can only hope.
@@xkimopye if only. Doesn’t help they can’t drive for shit.
Great piece.
Hopefully it puts things in context for the Australian population.
We either add value to resources so the world wants to buy the fruits of everyone’s labour or we start taxing the land we dig up and sell overseas. Only to buy back later. Paying for improvements/manufacturing plus transport costs will always make us the losers.
Rental affordability is also an issue.
& Apartments are also unaffordable for First Time Home buyers
I'd rather a $120,000 and 12% interest mortgage than a $900,000 mortgage with no interest at all.
People whining about high interest on their past pittance of a principal are full of shit and they know it.
Exactly, if the prices are lower you actually get the opportunity to save up and pay off a decent chunk up front, when I purchased a house I saved for 2 years and paid off nearly 40% straight off the bat, that would be impossible now. Saving for 2 years would be less than 20% of the value now I feel for a comparable property.
@@legallyfree2955 I'm happy to hear someone honest about it....
The generation who were in that opportunistic period have exaggerated everything to appear clever in their investments and hard working to their children.
They forget we have calculators and everything is documented and can be worked out quite easily.
Yep heard it most of my life "you don't know what it was like have to pay 15% interest!
Yeah how mnch did this house cost $30,000?
@@kendallbarnard4039 Simply put, the conditions they bought a house back then were no different than financing a car today.
Again.
Economic Suicide.
Stop negative gearing
Stop easy money lending
Our system makes it so easy to build and lockup wealth in property for investment.
But due to this we are now a very expensive society.
We should encourage investment in business and other activities that grow our GDP and exportable goods and services and keeping those competitive with the world.
At the moment ->
Expensive cost of living = expensive workforce = less profitable business = jobs and money going over seas = Australia steadily going down the shit hole.
To fix our economy.
Get rid of negative gearing
Encourage investment in business.
Make us more competitive in goods and services in the world stage.
The various reserve banks around the world, including ours, have a lot to answer for with these insane near zero percent interest rate targets.
3 percent used to be emergency levels, 3 percent!
Current near zero levels have resulted in crazy residential market distortions, gargantuan housing debt levels, massive losses to savers, and what looks a lot like intergenerational theft in the residential property market.
Totally agree
Oh dear her kids might not get swimming lessons and rebudget while she does renovations (hardly going to not be able to pay her mortgage by the sounds of it) meanwhile some people can barely afford rent.
If this is struggling for Australians on a mortgage then maybe we don’t have an issue after all.
I’d hardly call rebudgeting like that a struggle.
Probably drives an expensive car too
I run a children's after school sport business. If people decide to "stop swimming lessons", then the money doesn't come in for me or my staff.
@@minorcadence1 sorry but swimming lessons isn’t a vital thing when everything is going to shit (sure it’s important in some regards we don’t want kids drowning but it’s something that can be put on hold).
I run a business too and I’m betting that my product will not be on most peoples budgeting list. I have to be realistic of where peoples money will be focused on when budgets get tougher.
Foreclosures are the future.
So reitirees are at the mercy of the markets, and homeowners are struggling to pay for their current standard of living due to the markets. This article forgot to mention that people on the dole are also getting their rent raised and have no way of getting more money when the government refuses to say if the dole is enough to live on.
A.G.
Abolish the property market. Or offer rent to own HECS style government debts for first homebuyers and for those that will lose out from falling housing prices
The government is offering billions of cheap carbon credits to business at tax payer expense. Surely they can offer the same cheap finance to the people they serve?
@@godamid4889 carbon credits are a way to incentivise transition from polluting factors, and is a good thing. Government can end the subsidies for mining companies though to help offer the same financial assistance for the people 😊
@@PapaphobiaPictures carbon credits allow businesses to pollute by purchasing them. They are sold by companies that reduce or have a negative carbon footprint, and are bought by those who have a positive carbon footprint. When the government undercuts the market by $45 dollars or so and sells them at $12 dollars, they are manipulating the market and losing the tax payer that $45 dollars per credit in profit.
The carbon credits are artificially devalued and the incentive to reduce pollution is reduced, because it won't cost a polluting business an arm and a leg to buy it's responsibility away.
But you knew that, right?
@@godamid4889 well yeah, but it also offers the incentive to both reduce emissions where possible- so as to not have to pay to offset - and incentivise more green industry
@@PapaphobiaPictures I'm not sure you are getting the full extent of the picture. We are being actively divested of sovereign wealth via the carbon credits by the robber barons. In this theft the carbon credits lose both monetary value and environmental value. Move past the binary view that carbon credits are good or bad.
Carbon credits are a tool - it's how they are used that makes them good or bad. They are currently very bad.
I hope they increase the interest rates to atleast 7%, so the cash rate goes up and inflation stabilises. Help the people saving for a better quality life as opposed to the greedy investors buying property left, right & centre.
If I want something I save up for it, even for a home or car. When rates go up you don't want debt, you want to own the banks.
So where do you live while saving up for a house? You'll have no choice but to rent. Which is even worse than paying off a mortgage. Kind of shit attitude to have.
One thing in home loans is certain.
Over 30 years interest rates will...
Go up
Go down
Stay the same
It doesn't matter what the interest rate will rise, the house prices are not going down, they might flatline though. The government is depending on high immigrants who will be brining here all the money they can find as they are moving to Australia permanently. Plus stamp duty puts a lot of money in government coffers. This government dumb and leads a ostrich policy. They should develop regional areas with better infrastructure, jobs, high speed internet so those areas can rise and not just mel and Sydney, but the government wants ppl to work in mel or Sydney cbd only hence the crazy prices aswell
@@Lycuse I don't live in Australia, we have multiple investment properties in Australia hence the interest in the market. Also you should tell your government to stop inviting high immigration and also stop negative gearing, it might help you guys. Your government has left nothing for the first home buyers. If the property prices go down due to a bit of interest rate rise we will buy more properties and increase our portfolio and if they dont fall our current properties will rise while being cash flow +
lol... You mean increasing debt per capita to 200% while stagnating income growth is a major economic problem....
I wonder which political party could be blamed for poor governance.
Liberals : 1996 - 2007 (13 years)
Labor : 2007-2013 (6 years)
Liberals : 2013-2022. (9 years)
Indeed. I'm trying to work out why Aussies keep voting for the Liberals.
I'm assuming they are aspirational. I.e. they all think they're going to be rich.
Housing affordability is an issue for most developed countries
And?
@@joek292 Get yourself more money or go without, simple as that really
@@ewtwetrwerwteet been screaming this.
No one seems to winge about real estate commissions, you need to make $50-100K profit just to break even, real estate commissions can be much as stamp duty, I reckon commissions should be capped at $5000 per house. It's not just banks hurting us, it's fees too
I am already enrolled as a student at a uni in Queensland. Can someone here tell me what is an average of living cost that I have to prepare for a month. Is it enough if I only allocate at 1.850 AUD for a month?
Thanks for the answer guys.
That will be tight but doable.
You will need share house accommodation of course.
With frugal spending, you can actually still enjoy living. You should be able to go out occasionally, and all that.
Property taxes must come down and house prices too I pray.
As a young person like the old retirees who don’t have a mortgage I really thinking rising interest rate would help improve my bank savings. I would have more from the money I made. Win win
Why renovate a house when you have debt? It’s a luxury not a necessity, unless for safety.
I don't want children so I don't want or need to own a home. If I had the money I'd buy a two bedroom unit in the city
I don’t want children either, which allows me to have my house payed off by my mid 30s. Then spend the rest of my life rent and mortgage free.
@@xkimopye good for you,
I work at a place where people are now doing more hours and more days in order to pay for the "high cost of living", but to spend your paycheck week to week on frivolous things is only fuelling inflation. We all (as a country) need an economic education on how we can reduce the severity of the cost pressures. I'm not sure these generations can do it... they've never had hard times and as a result are so soft and silly.
40 MILLION waiting to start their lives in Australia, who cares
True ppl forget government is dependent on immigrants who are brining loads of cash as they move here permanently
In Syria and Afghanistan?
the root cause of all of this the RBA
Come on tell us the real inflation rate
The Australian interest rates will rise around 2% more than the interbank rate set by the New York Federal Reserve Bank. This is what happens. We could replace the Reserve Bank of Australia with an application that monitors the rate set in America and another application that creates new Australian dollars when the government needs more money and won’t raise taxes.
house pice stays high, interest rate goes up, then rent should go up.
Is our wage going up as well?
One wonders if this is a consequence of human growth. For the last 100 years the population globally and domestically has increased massively. Anyone who has had a basic induction into biology would be well versed on the idea of population carrying capacity, humans have been able to continually increase this via means such as medicine, education, etc. I do however wonder what the future has in hold, perhaps a third world war, a mass famine/pandemic, who really knows. I do find comfort in the fact that the show must go on, humans or not.
A friend of mine was mad keen to buy his own place last year, with the hundred grand they had saved... all their savings went to deposit and now have a standard sized mortgage - she works a factory job, he was unemployed, they lived with his mother beforehand, rent-free for years. I wonder how they are going to get along now with 0.25% increases each month, every month...
The discovery of oil peaked in 1964
Last year only 4.7 billion barrels were discovered
Mankind consumes 3 billion barrels a month
36 billion barrels PA
So 4.7 billion is 31.3 billion barrels short
Mankind cannot pump undiscovered oil
when?
Increase in interest rates is not gonna fix the underlying problem. First home owners - I wish you luck. Rate rises will hinder your chances even more.
And get this over your heads. Interest rate hikes doesnt equal house price drop.
Fix your interest rates, join the army reserve for extra money.
Housing will double in price, because the dollar inflated.
Supply needs to be increased.
More houses / apartments need to be built or more Land released
Government keeps lower interest rate to boost activity, it's understandable. The government should also see the steep increase in house prices and potential increase in interest rate. As a responsible government it should 1) warn home buyers of the risk, make sure they do not over gear, 2) instruct the financial institutions to be more cautious, meaning make sure that borrowers would still be able to repay their mortgages even when interest rate increase 2% in the next 24 months, with due consideration on inflation rate. I am certain that inflation has not been duly included in the banks' calculation.
Liar loans and what happens when can't repay
The system is broken, we need to not have a system where the rich can actually make money of interest rates rising and the poor can lose from it. While interest on debt seems to make sense, the more I think about it the more it just seems like something to keep poor people from breaking out of their situation.
Should someone who has negative money (debt) be charged more money, while someone who has positive money (savings) be making more money? The system is broken it keeps the rich rich and the poor poor.
You can thank the LNP for all this. Everyone who complains that house prices are too high and voted for the LNP last election should not be allowed to live in this country, they should be shipped off to a country where intelligence is not required.
@@Spacemonkeymojo as awful as LNP is and ALP would have improved thing they wouldn't have fixed the issues.
It's capitalism and dodgy banking that is the cause, shipping people away for not understanding politics or viewing it like a football team that you follow for life is not good.
Instead it is a sign of failing education system, not a fault of the individuals.
My dad used to say...
A couch was a week's pay
A car a year's
A house 10 year's
So 7-9 year's pay is very good.
Its trivially much higher with a mean wage of 85k and a mean of 1.4m purchase price.
These are people trying to tell you to accept what they want
I think he may have mean't paying the house off in 10 years.
In the mid 90's, Brisbane housing was 3.5 times average income.
How on earth is inflation only 4% where are the shopping at
Get out of debts now before you suffocate. Learn from Dave Ramsey and stay debt free.
I learn from Gordon Ramsay
Considering houses as a means of an investment is in the end an open gate to lowered welling being of normal people.
Anyone in their 40s or older had no excuse! You had the best times to buy a house. Its the current younger generations i feel for
Interest rates need to rise. Using housing market like a bank is immoral. It isn't fair people pay such high inflation to protect others housing finance
What happens if the interest rate goeses up? 🤐
Kingston se south Australia home for 250 000
I bought my first home in the 70s for $12,000. I was earning $3,000 P.A.
4 years income.
And now average house price is 32 x annual salary
This is Awful when you have Accounts connected to Prime rate plus ?. If Inflation isn’t Bad Enough. Gif Help us All!🙏😞🙏
Push the interest rates up to 5 percent and crash the property market
Get rid of the fancy car and the pool, then maybe you can afford the other things Sarina!
Thr real reason for this financial stress is the structure of the financial system. Debt needs to inflate to hold up the system. It's an exponential debt based system, a ponzi scheme of epic proportions. Mathematically, it was also going to fail since the world left the gold standard. The failure is getting closer. Uncertain times ahead. Buy food.
liars: by reducing interest rates that causes inflation
Could we have an angle on the majority of Australians who are single and rent. We are the people that will be paying for the greed of the indebted home owners.
Here's an angle for you, my own experience:
In late Dec 2021, my landlord sent me a rent increase to come into effect in 28 days... late Jan 2022. The amount was 20.5% more than current. I google accommodation CPI and was met with a 5.3% figure... I complained the increase was excessive, and my complaint would be mediated by the Residential Tenancies Authority (QLD). Although I lodged my complaint within a couple of hours of receiving it, I didn't hear anything from RTA and had to make a decision at least 7 days prior (which I decided to vacate, not out of financial burden, but out of principle of why could someone treat a good tenant this way). The RTA finally called on the Tuesday after my weekend move-out process had already happened, which I gave them some "very honest" feedback ☹️ Since that was late Jan / Early Feb, I have just "celebrated" six months of homelessness. My car is my refuge, my roof over my head for the past half-year.
Would an alternative to RBA interest rates going up is increasing the overall income tax rate above $80K? I feel that might help slow down inflation while assisting low incomes in keeping up with cost of living without squeezing every homeowner around.
The last tranche of LNP tax CUTS are coming through
If debt was a sport Australians are world Champions literally and the RBA is our coach cheering us from the sidelines.
ABC should (and others) should take out-of-date news videos down or ID them is some way. UA-cam should filter them better
This is the great reset. Wake the f up
Is there one married mother anymore?
Were is the lady from Igleburns Husband? If she does have a husband why she saying she is paying for groceries etc, then say we have a mortgage? Its not hard to teach your children to swim by yourself.
I wanna see these mortgage junkies cry on ACA, my savings have been providing cheap money to these kids in a sweetie shop for too long.
Australians would rather eat cat food than miss a mortgage payment.
I pretty much do, my lunch every day is a 90 cent can of tuna.
But hey my house is almost payed off in my mid 30s
@@xkimopye peasants
You can literally print infinite amount of fiat, set the inflation number and the interest rates don’t let them fool you into controlling your finances and determine how you live do not put up with poverty and inflation know your human rights! Be sovereign and have liberty , the system is broken we need a complete social democratic reform of our financial system with crypto currency on the blockchain to combat inflation and use innovation to our advantage to live a luxurious life. Who’s with me!! 🚀🚀🚀
Buy what property you can afford, 20 years population will likely grow a lot. Gap between rich and poor will be unbelievable. Love to sell price drop 50% to 100% so that the next generation can buy. Highly unlikely.
With a second baby on the way as a single parent I pinch every penny. The last thing you want is having debt on your name. I had to close my credit card account because I couldn't afford the payments anymore. My daughter doesn't attend activities but does that make me a bad parent? No it doesn't because we all know how much all this things cost especially if your a single parent and everything is on you to pay for and you don't have someone else helping financially. I can't even remember the last time I shopped for myself because you only think of the kids and alot of things I've had to cut back on.
Really can’t empathise with the wealthy old woman who lives in Manly and has a Burberry face mask 😂
And yeah tbh thinking about paying for swimming lessons or adjusting the renovation budget is also not a real struggle lol
Lithgow nsw home for 250000
And waterfront properties, at that! (well water with shit in it, but still)
How many jobs you got there bud? Usually a reason for somewhere being cheap
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Your mortgage rate isnt fixed.
If interest rates go up I could take my grand children out, sure they will be homeless but it's all about ME!
Just maybe if you and all future Australian children were given in high school the understand of economics,stock markets,bonds,interest rates and charting if you may have been armed with the desired ability to choose from a different outlook? Ho and at the same time through in learning to drive a motor vehicle correctly
Too many Australians over extend themselves when it comes to mortgages and house prices.
roll a dice
I blame lifestyle here. She wants to live as close to the city as possible. Well its almost impossible to afford something like this. Do what I did, buy a house 35km out of the CBD, a new estate, I have a double story house, with all the bells and whistles and I only paid 500k. (Rockbank Melbourne) If she is willing to make this sacrifice then she can have a house too. But 9 times out of 10 people are not prepared to make this sacrifice. And i only earn a peasantswage of 60k a year. Yes I have kids and a wife who works part time.
Even better...move to a country town.
Have less children
How this is a big shock to people still blows my mind…. How else can they push a one world economy/ government? We are in end times dear brothers and sisters. All it takes is belief and you will be saved. Accept and admit you’re a sinner who has fallen short and are not great or perfect by any means. Believe in your heart that Jesus died and shed His blood on the cross for your sins as a sacrifice, that you may have eternal life. That He died and rose again on the third day. Believe with your heart and confess with the mouth these things and you shall receive the greatest Gift. God bless