facing reality
- Thread starter coastymike
- Start date
I actually think this can be a short sighted view.
If everyone stopped going out, stopped spending money and just squirelled it away for property. What do you think is going to happen to the economy? How can it afford to employ anyone?
Being an investor is partially exploiting the opportunities that others are passing up.
On the balance of things they are probably doing more than their fair share stimulating the economy, so you can do less than your share.
Also having less people buying property, creates the opportunities investors can use to make money (e.g. buying under value). In a fuller market, things are more likely to be at fair value.
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I think its like in the USA, they want to pay the majority of people a **** wage, while some fat cats hoard all the money. Then they wonder what the hell is going on with the economy. You need that money to keep flushing around the economy.
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There's a problem in focusing all your money at just one part of the economy.
If everyone stopped going out, stopped spending money and just squirelled it away for property. What do you think is going to happen to the economy? How can it afford to employ anyone?
Being an investor is partially exploiting the opportunities that others are passing up.
On the balance of things they are probably doing more than their fair share stimulating the economy, so you can do less than your share.
Also having less people buying property, creates the opportunities investors can use to make money (e.g. buying under value). In a fuller market, things are more likely to be at fair value.
......................................................
I think its like in the USA, they want to pay the majority of people a **** wage, while some fat cats hoard all the money. Then they wonder what the hell is going on with the economy. You need that money to keep flushing around the economy.
........................................................
There's a problem in focusing all your money at just one part of the economy.
Respect is earned. It doesn't come with age, wealth or having a big ego.
Respect is earned. It is earned with age aka experience and wealth aka success and to a certain degree a bit of "stardom" if you will.
It's certainly not earned by whingeing, complaining and tall poppy syndromatics.
The people who don't have much look at the people who have a lot more, and think they ha it good.
People who have a lot more look back on how they got there- and think of all the work they had to do to get where they are.
The people who are going to succeed are not the ones who envy and blame. The ones who will succeed are the ones who try to find out how other have succeeded and who try to do similar.
People who have a lot more look back on how they got there- and think of all the work they had to do to get where they are.
The people who are going to succeed are not the ones who envy and blame. The ones who will succeed are the ones who try to find out how other have succeeded and who try to do similar.
You weren't there, so you can't really say.
I, and several others on the other hand; were, and have been through all you've been through so far.
To coin the phrase; "we've been there and done that", whereas you've been....nowhere it seems.
The differences in how we live life now and how life was lived back then are vast.
But; you weren't there, and wouldn't know, so I'll excuse your ignorance.
Who is doing the whinging here? It's older generations whinging about the whinging of younger generations. The irony is delicious
indeed
My 13 yr old son keeps reminding me that I know squat about Mindcraft so my general life experience doesnt amount to much.
ta
rolf
Who is doing the whinging here? It's older generations whinging about the whinging of younger generations. The irony is delicious
True.
Then as the original linked article illustrated some of the younger generation require help from the Bank of Mum and Dad to get started in the property market.
That's true of my partner and I. We've financially assisted our kids and their partners to be home owners.
Both of our parents weren't in a position to do the same for us although they were of a generation of the stay at home mum and the neighborhood was much more sociable.
Maybe if he doesn't go on holidays every year and go out drinking with his mates on Friday and Saturday, he'd have paid off a house by 30. And then he could do everything he wanted to do at 31.
Yes you can tell me how unaffordable these houses are when the Sydney population spirals to 8 million as predicted. It would have a population that matches London and Hong Kong. Go check out prices there.
Do you know why the property in Hong Kong is unaffordable? Nothing much to do with the population
I've tried to find out if housing is more unaffordable now than, say, 40 years ago. It's difficult to say as the definition of affordability can vary. But it does appear that affordability dropped from 1985 to about 2008, but has improved since then. Overall, probably less affordable but not hugely so.
What has perhaps changed is the number of doodads available now. There's a lot more temptations and other things to buy. Consumer electronics is obviously huge now. Eating out is done far more frequently. Houses must be bigger for many. Nice cars are much more common now. If my daughters decided to get married, the wedding expected would be a big and expensive one. Travel has become a priority for many.
Housing is just one competing priority for many. Whether a young person places buying a house high in their priority list or not is their decision. I believe that any young person with in demand work skills who puts buying a house high in their priority list will be able to buy some sort of house.
Many people though- of any generation- put many other things higher in their priority list. I certainly did, for many years. I was 35 when we bought our first house. Before then I thought that a house was beyond my means- and the other things on my list had a higher priority. That house, in England, achieved nothing for us. Our first house in Australia was bought when I was 37 (actually just land then), a but over 20 years ago. At age 40 I couldn't even afford a house- we bought a block of land and sat on it for a few years until we could afford to build.
That was just a matter of shifting my priorities from the other stuff to buying a house.
What has perhaps changed is the number of doodads available now. There's a lot more temptations and other things to buy. Consumer electronics is obviously huge now. Eating out is done far more frequently. Houses must be bigger for many. Nice cars are much more common now. If my daughters decided to get married, the wedding expected would be a big and expensive one. Travel has become a priority for many.
Housing is just one competing priority for many. Whether a young person places buying a house high in their priority list or not is their decision. I believe that any young person with in demand work skills who puts buying a house high in their priority list will be able to buy some sort of house.
Many people though- of any generation- put many other things higher in their priority list. I certainly did, for many years. I was 35 when we bought our first house. Before then I thought that a house was beyond my means- and the other things on my list had a higher priority. That house, in England, achieved nothing for us. Our first house in Australia was bought when I was 37 (actually just land then), a but over 20 years ago. At age 40 I couldn't even afford a house- we bought a block of land and sat on it for a few years until we could afford to build.
That was just a matter of shifting my priorities from the other stuff to buying a house.
My first thoughts were they probably gave up that lifestyle at 29 and a few months on/a few weeks on/thinking about it, has all got a bit much
.I highly doubt they're the types who would be on the noodles either - more like trying to save a bit here and there only to blow it later but never getting anywhere
.The ones that don't whinge and just do - plenty like that out there - are living proof it's not that hard to do.
MrCrumbpacker, I worked and lived in London just over 30 years ago, and thought it was quite expensive unless you dropped the good life and lived at home, lived in a bedsit, earned a very good income or 2 decent incomes, and lived on noodles. It wasn't just a case of 'saving for a bit'.
Live in a bedsit (a room) here, now, doing the same, and you'll easily save a deposit for a house in no time.
I reckon the only people who would find it difficult to save a deposit are those who are single, rent, and who earn well below average income.
Once you get into average incomes (singles can rent cheap rooms) or double incomes it becomes a case of what your spending priorities are and what you're prepared to give up.
geoffw, I think you're right on the point about having got used to more doodads and the availability of so many more 'lifestyle' activities on offer that some can't bear to think that they must give up some of these sometimes, to purchase big ticket items like a house.
Like I just mentioned with those that don't whinge and just do it - they're the ones who don't kid themselves and so are able to achieve what they set out to do.
number of comments.
Firstly what's the underlying objective of the article?
No its not about truth. It should be but truth doesn't sell media. Two things do:
(a) personal identification with the article.
Yeah that's right I feel the same way, it shouldn't be like this. I should be able to buy (just like I have been able to buy various doodaas through my life cycle) when I want to buy.
(b) outrage.
Refer to most of the posts in this thread.
In either case the objective has been achieved. And by the way, with either feeling, hope you had a glance at the surrounding advertisements.
In regards to your other comments, sorry but I don't agree that life has to be hard. For some it will be. But for most in Australia, it shouldn't be.
But life is like a game of chess. Plan your moves, and the game is easier to play. Be reactionary, playing just one move at a time, and probability is life will be harder.
I don't know why it is, but most human beings are just like the matrix. They are tapped into a system. When presented with the truth, they prefer to take the blue pill. Even worse they will demand that others take the blue pill as well.
Lastly your commentary about superannuation returns is the same as the underlying commentary that you were criticising but from a different perspective.
Superannuation returns are just fine. Its just that your reference point is inappropriate. Too many people used recent returns (pre-gfc) as the normal returns, when it fact they were abnormally high. We are just in a process of return to progression of the mean.
Correct.
A good example is the young electrician who did the job on our PPoR build the year before last....
About 30 years old, and had just recently become a father.
He had his own home (still paying it off, but almost done), and he and his brother (a chippy) had bought an old home for reno and sell for profit.
Then repeat.
So, as you say; they are out there, doing what is required - not like us old timers who had it easy
Bear in mind that housing is less affordable than it was twenty years ago. Chart from the RBA in 2008.
A lot of investors have benefited from rapidly rising property prices. The downside is largely borne by new entrants to the market.
A lot of investors have benefited from rapidly rising property prices. The downside is largely borne by new entrants to the market.
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