Sooky-la-la

Imo though, it is harder for young people to get into the ppty market. Empirical evidence and statistics bear that out. We'll just have to agree to disagree.

I think the key is the perception of harder. The attitude towards hard work, sacrifice and whatever it takes to buy your own home is what separates those who do buy from those who protest the 'harder' position regardless of generation.
 
Skater, I have been too a few Vietnamese Weddings lately mainly from the mates my daughters made in the school they all went too from grade one,
and they would sleep over in our house over the years,,the last one was over 150 people and they had a wishing well in the front entry my daughter was one of the bridesmades ,she told after they all went back home to party on,they counted all the parcels that everyone put into the wishing well,it was over 85k,and thses are the people that came to AUSTRALIA in boats in the mid 1970's,and worked like farm animals night and day..
You got it - that hard work paid off. They invested in property and now they're rolling in it. Still modest and eat well. Save where they can. Our new millionaires next door.
 
i dont think it's just the young'uns. there has always been a lack of financial literacy in this country, people have been making stupid decisions with the money for decades.

This is the truth. Took me an extra 20 years to learn what many pick up as teenagers. Started working really young but never understood why. Thought I was earning less than others but was wrong about that too.
 
man what a headache I got from reading that bit

you receive a gift but its yours but not,

plus you have to pay it back

plus you have to spread it back out to inlaws and to their friends

It is a society's way of giving a loan. If someone gave $100 for your wedding in 2005, you will give back around $150 or something now. Inflation :D

Actually money gifted at a wedding should cover the wedding costs and expenses related to starting a household.

A personal loan, something like HECS.
 
It is a society's way of giving a loan. If someone gave $100 for your wedding in 2005, you will give back around $150 or something now. Inflation :D

Actually money gifted at a wedding should cover the wedding costs and expenses related to starting a household.

A personal loan, something like HECS.

if someone gives me money on my wedding, its all going to the wedding costs!!! and any left overs will be drunken by me within the first 2 weeks

no one is getting a cent back!!!

by the way, in the mentioned culture, what happens on the 2nd, 3rd, and 4th weddings?? do you get none, or get less, or just get a lecture from your relattives in your ability to choose a partner
 
I didn't have any of those things either. We played outside with our neighbourhood friends until the sun went down. I got my first bike in my early teens. It was second hand. I remember riding it happily up and down the street. Times have changed.

Holy cow, Batman, I didn't even have a bike when I was a kid.
 
if someone gives me money on my wedding, its all going to the wedding costs!!! and any left overs will be drunken by me within the first 2 weeks

no one is getting a cent back!!!

by the way, in the mentioned culture, what happens on the 2nd, 3rd, and 4th weddings?? do you get none, or get less, or just get a lecture from your relattives in your ability to choose a partner

I have no idea about that one.....never been to one.
Maybe they just elope and get married quietly??? No idea.
 
I think it is easier for people to overextend themselves now, than it was back then. Many seem to buy at the top of their affordability, which can make finances tight, especially in the environment we have now, with low interest rates. It will be a world of hurt for some when the rates eventually rise, as we all know they must do at some time.

Well said. People overcommitting because they can (i.e. the banks let them) is what is causing a lot of stress.

If people don't believe our standard of living has improved as a result of free-trade agreements, which allow us access to cheaper goods made with cheaper labour, they are wrong. The sad thing is it comes at a cost of lower-demographic manufacturing jobs, but at least I can buy my TV relatively cheaper :rolleyes:
 
Like all pursuits; property is one where sacrifice and discipline are two of the required traits to be successful. I agree that prices are ridiculous and possibly at bubble point. But, ya know how the saying goes.. When life throws you lemons, and all that.
 
Well said. People overcommitting because they can (i.e. the banks let them) is what is causing a lot of stress.
I remember when I bought my first house (here we go; another "back in my day" yawn from an old b@stard) and was applying for a loan, the normal serviceability "model" was 80% P&I loan over 25 years, 20% cash deposit plus purchase costs from your own funds, and employment history (I think 6 months at least?)

Total of all loans could only maximum of 35% of your gross wage (or was that nett? Can't recall exactly).

Imagine what might happen if all the Banks went back to only that criteria for say; the next 5 years.
 
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I remember when I bought my first house (here we go; another "back in my day" yawn from an old b@stard) and was applying for a loan, the normal serviceability "model" was 80% P&I loan over 25 years, 20% cash deposit plus purchase costs from your own funds, and employment history (I think 6 months at least?)

Total of all loans could only maximum of 35% of your gross wage (or was that nett? Can't recall exactly).

Imagine what might happen if all the Banks went back to only that criteria for say; the next 5 years.

The value of your investments would fall and you'd be on here screaming blue murder about socialism?
 
The value of your investments would fall and you'd be on here screaming blue murder about socialism?
It's possible they would stagnate for a while, for sure.

What is socialist about a more rigid and sensible loan criteria; designed to ensure the mortgagees don't over-commit themselves? :confused:

It was how it was done for decades...in a free-enterprise economy.
 
I remember when I bought my first house (here we go; another "back in my day" yawn from an old b@stard) and was applying for a loan, the normal serviceability "model" was 80% P&I loan over 25 years, 20% cash deposit plus purchase costs from your own funds, and employment history (I think 6 months at least?)

Total of all loans could only maximum of 35% of your gross wage (or was that nett? Can't recall exactly).

Imagine what might happen if all the Banks went back to only that criteria for say; the next 5 years.

I'd be OK, but many wouldn't... I'd like the buying opportunities it presented :D
 
It's possible they would stagnate for a while, for sure.

What is socialist about a more rigid and sensible loan criteria; designed to ensure the mortgagees don't over-commit themselves? :confused:

It was how it was done for decades...in a free-enterprise economy.

Umm no it wasn't a free enterprise economy in financial services at least. Back in the day CBA was government owned and banks all had controls on amounts that the government "allowed" them to lend. Needed your parents to know the bank manager to get a loan, wife's income ignored etc.

No thanks....

Mortgagees are the lenders by the way. Mortgagors are the ones borrowing the money.
 
I remember when I bought my first house (here we go; another "back in my day" yawn from an old b@stard) and was applying for a loan, the normal serviceability "model" was 80% P&I loan over 25 years, 20% cash deposit plus purchase costs from your own funds, and employment history (I think 6 months at least?)

Total of all loans could only maximum of 35% of your gross wage (or was that nett? Can't recall exactly).

Imagine what might happen if all the Banks went back to only that criteria for say; the next 5 years.

Yep. And the wife's income wasn't taken into account for loan serviceability either as she might get pregnant. I think expectations have changed a lot as well. The first mortgage is always the hardest.
 
Yep. And the wife's income wasn't taken into account for loan serviceability either as she might get pregnant.
True story - when I was applying for the first PPoR loan we got knocked back for exactly that reason!! This was 1985.

I was dumbfounded.

I called my accountant and he made a couple of calls and we got the loan.
 
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