Doug, personal anecdotes are not a great way to objectively identify what is happening here across the population. Look at the graph in this link. House prices are far outstripping wages growth across the country. [maybe less so if you're a tradie, building and fixing houses!] Tradies & builders do really well out of a housing boom (and a heap of 'home improvement' soaps on TV) - they are not representative of wages in the full workforce. I saw this firsthand with my dad in the 1980s and 1990s in the UK.
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Terrific Andy another graph. The figures Quoted are FACT. This was a property I actually owned. It was a job I actually had. It was relevant because it was what I was quoting where your graph takes into account the luxury end of the market along with the low end. Not to many 20 year olds who can afford to buy the multi million dollar houses that are included in this graph. It is representative but is just another excuse for wanting to have it all in the start.
If everyone started with sheets on the windows, no carpet, basic appliances as others here has stated then amazingly house prices in the outer suburban areas would seem much more affordable. Not everyone can live within walking distance of the CBD.
Gday Marc
I think you are missing the underlying problem. ( they are brilliant at this )
The financial industry can only survive if it has money to churn ( for a percentage ) or a big pile of static money that they can nip fees off the side when no one is looking. They can only do that from people who have actually saved money.
I stopped putting money into super as soon as i could and invest it externally myself.
I reckon in a few years when the finacial situation in Oz gets worse, super will become the feed stock for everyone who needs some money, and there will be nothing you can do about it.
Andrew
I'm pretty sure it will. The deal is that we pay taxes now so we get it tax free after the age of entitlement but I reckon they'll tax us on the other end, so we can feed all the whingers.
Yes that's right, all young people are lazy and expect the world handed to them. Therefore, when they complain housing is unaffordable, it isn't really, because they lazy and want everything now.
Yes that's right, all young people are lazy and expect the world handed to them. Therefore, when they complain housing is unaffordable, it isn't really, because they lazy and want everything now.
We bought a fibro board house that was tiny at Woodville North in Adelaide. Many people I knew would not have even lived in that suburb as it wasn't considered highly. It was a good street. We paid $50K for the place in 1985. Many people had better shacks up the Murray than that house, but we were as happy as, just to have our own place. I still remember the gold carpet we had. We painted, improved and cleaned and did the garden up.
We scrimped and saved and eventually moved on, then scrimped and saved some more. But we still don't have a mansion, but I don't have a huge loan either. These were the days before mobile phones, internet fees and all the other new expenses that want a slice of the pie that is your income.
The key to getting financially well off is not to borrow for personal things unless you absolutely have to. Live within you means. A car or house is ok but youngins these days borrow for holidays overseas, iPones, 80inch TVs you name it. Save for it and buy it outright is my advice.
