The Australian housing bubble furphy

[Deltaberry]

He/she is also free to disagree with your post, as it is a public forum. You can express you opinion freely, but it isn't free from challenge.

Every generation thinks the one after it had it easier than they did. I'm sure the youngsters here will be saying the same thing to their kids one day.

I don't. My parents certainly didn't have the opportunity to find 300k-500k jobs at 25 or 26 or so doing nothing but pasting stupid graphs from one presentation into another and pretending they're doing deep and meaningful analysis.

As others mentioned, there're heaps of jobs in IT where people make good money before 25. And when I made a similar comment, I wasn't even thinking IT as I knew nothing about that field.

 

[Deltaberry]

i think a lot of things depends on interest as well - u can't expect someone to be engineer if she or he has no interest.

Like those masterchef dudes, some were IT engineers, lawyers etc but they just loved cooking. End of the day if you like what you're doing - you gonna be more happy.

I've never met a lawyer from a top law firm - and I know plenty - who like their jobs and are happy. Half of them often wish they were never born.

 

[Beebop]

I don't. My parents certainly didn't have the opportunity to find 300k-500k jobs at 25 or 26 or so doing nothing but pasting stupid graphs from one presentation into another and pretending they're doing deep and meaningful analysis.

As others mentioned, there're heaps of jobs in IT where people make good money before 25. And when I made a similar comment, I wasn't even thinking IT as I knew nothing about that field.

Wtf ?? WHO HAS THAT OPPORTUNITY ?? What in the lords name are you talking about ? 300k jobs for pasting graphs ?

My parents had shitty lowing paying jobs and were able to afford a house. Those same jobs today, they'd struggle,

I lol @ baby boomer complaining how hard it is with the 200k mortgages :S They don't know how easy they have it..

 

[wisty]

Wtf ?? WHO HAS THAT OPPORTUNITY ?? What in the lords name are you talking about ? 300k jobs for pasting graphs ?

Management consultants can get paid a fair bit, for putting out cookie-cutter presentations.

But I doubt it's 300k. 300k is CEO territory. And to do that, you have to work long hard hours, and have to outshine every other VP who is going for the position. Actually, the pay isn't high because the work is hard. The pay is high so all the other knob-polishers work harder, trying to get the top job. It's like reality TV, without the TV part - people go gaga for the promise of oversized rewards, even if they are probably just going to end up with a "thank-you for playing, sorry you lost" consolation prize.

 

[Beebop]

Management consultants can get paid a fair bit, for putting out cookie-cutter presentations.

who are likely baby boomers.

 

[weg]

There are people making that much money in salary (and more), but I don't think it's quite what Deltaberry makes it out to be.

It's a very small percentage, most are not 25 or 26yo and none of them have just walked into the job and are twiddling their thumbs.

Many are in fact the parents of 25 to 26yo's, and have taken a few good years to get there.

It's not exactly a great example, although it's a very Deltaberry one.

 

[Bigtone]

Provided that something you love actually provides employment.

i am stealing this but

' you don't become successful by doing what u love

u become successful by loving what u must do'

 

[Wunderbar]

There are people making that much money in salary (and more), but I don't think it's quite what Deltaberry makes it out to be.

It's a very small percentage, most are not 25 or 26yo and none of them have just walked into the job and are twiddling their thumbs.

Many are in fact the parents of 25 to 26yo's, and have taken a few good years to get there.

It's not exactly a great example, although it's a very Deltaberry one.

Yes it's not a lot of 25-26 who earn that but it is possible. I have witnessed it first hand, but you do have to work very hard hours and probably wish you were dead.

 

[Melbournian]

Management consultants can get paid a fair bit, for putting out cookie-cutter presentations.

But I doubt it's 300k. 300k is CEO territory. And to do that, you have to work long hard hours, and have to outshine every other VP who is going for the position. Actually, the pay isn't high because the work is hard. The pay is high so all the other knob-polishers work harder, trying to get the top job. It's like reality TV, without the TV part - people go gaga for the promise of oversized rewards, even if they are probably just going to end up with a "thank-you for playing, sorry you lost" consolation prize.

i don't think it is management consultants - investment bankers would be the job title. For them - these numbers are normal.

 

[dan c]

I don't. My parents certainly didn't have the opportunity to find 300k-500k jobs at 25 or 26 or so doing nothing but pasting stupid graphs from one presentation into another and pretending they're doing deep and meaningful analysis.

As others mentioned, there're heaps of jobs in IT where people make good money before 25. And when I made a similar comment, I wasn't even thinking IT as I knew nothing about that field.

As usual you have missed the point. the (current) 80 year olds complained about the 'long hairs' and the music and how easy their kids had it. Their kids, the boomers, didn't have to grow up in a depression.

The boomers now do the same thing, talking about higher interest rates, recession etc. and how easy their kids have it with the improvements in technology etc.

I'm not saying any generation is right or wrong, just that this happens, and has happened since the dawn of time.

 

[zed_kid]

As usual you have missed the point. the (current) 80 year olds complained about the 'long hairs' and the music and how easy their kids had it. Their kids, the boomers, didn't have to grow up in a depression.

The boomers now do the same thing, talking about higher interest rates, recession etc. and how easy their kids have it with the improvements in technology etc.

I'm not saying any generation is right or wrong, just that this happens, and has happened since the dawn of time.

Yeah and when GenY gets long in the tooth they’ll be complaining about kids hoverboarding everywhere and augmented implants that they wear as a fashion statement. They will also say how easy the hoverboarding augmented generation have it with high paying jobs on the moon and teleportation travel.

 

[The Fence]

Now that we've all thrashed out the wages of kids and their kids and their kids down thru time....and the result is the same all over..the kids (when they're kids) complain they have it tough but the better ones always seem to find a way to improve their lot and get on with life and make a buck with the premise that they 'have a go'.....

So many furphys and so many times they are easily explained when you go down thru the ages....nothing is different now, just different variables but the market is the market and always has been the leveller... and there is nothing you can do about it...people are paying what they feel is fair in their minds at any point in time and getting on with things and not dwelling on all the negatives and crying poor...sometimes it overshoots and sometimes it's cheap.

It's only in each individuals mind as to the status of the market but it is always right at any point in time and if you are behind the eight ball then you need to get your finger out and work a bit harder if you want to participate.

Or just stay renting and stop whingeing...

 

[VYBerlinaV8]

Now that we've all thrashed out the wages of kids and their kids and their kids down thru time....and the result is the same all over..the kids (when they're kids) complain they have it tough but the better ones always seem to find a way to improve their lot and get on with life and make a buck with the premise that they 'have a go'.....

So many furphys and so many times they are easily explained when you go down thru the ages....nothing is different now, just different variables but the market is the market and always has been the leveller... and there is nothing you can do about it...people are paying what they feel is fair in their minds at any point in time and getting on with things and not dwelling on all the negatives and crying poor...sometimes it overshoots and sometimes it's cheap.

It's only in each individuals mind as to the status of the market but it is always right at any point in time and if you are behind the eight ball then you need to get your finger out and work a bit harder if you want to participate.

Or just stay renting and stop whingeing...

+1 - very well said.

 

[Beebop]

Yup. Nothing has changed except the multiple of house prices to earnings.

 

[Propertunity]

Yup. Nothing has changed except the multiple of house prices to earnings.

The ANZ Australian Property Outlook http://www.anz.com/resources/5/5/551...ff9f5b4fbd8721
says Australian house prices are not overvalued and that the measure of house price to income ratio is a flawed measure of affordability.

 

[Beebop]

The ANZ Australian Property Outlook http://www.anz.com/resources/5/5/551...ff9f5b4fbd8721
says Australian house prices are not overvalued and that the measure of house price to income ratio is a flawed measure of affordability.

average income vs price is a pretty good incidcatror of the price of houses i dunno what else you want it to say.

if average wage at point 1 is 50 and a house costs 100 multilier is 2

if averagfe wage at point 2 is 100 but a house costs 500 multiplier is 5

then in point 2 houses are more esspensive compared to income.

go on crap on about dual incomes b.c they existed 20 years ago 2.

 

[BayView]

What I've seen in my life is not the wages to borrowings stat that has blown out...

It's the wages to level of housing expectation stat that has blown out.

If it hadn't, then no-one would be buying 40 squares houses out in a dive like Craigieburn as their first home, then whine because of their commute through the traffic jams to the city.

Hey; here's a concept; when you leave home and enter the big bad world, rent a one room apartment/rat hole right near your inner-city work so you don't need to buy a car, do this for 5 years and then go buy a modest house a bit further out in the middle ring as yer first attempt, do it up, buy/borrow second hand furniture and put blankets up on the windows and do this for the next 5 years and by then you will have moved up the ladder and can then buy the McMansion with ease.

 

[Propertunity]

Beebop, it does not really matter what argument you want to mount a case for, the market just continues doing what it is doing.

Go on, tell me how it's all going to be different now

 

[Beebop]

Beebop, it does not really matter what argument you want to mount a case for, the market just continues doing what it is doing.

Go on, tell me how it's all going to be different now

income of 50k house price of 150k = 3 times multiplier

income of 50k house price of 400k = 8 times multiplies

how exactly is that meaningless ?

Oh dual income couples. Becuase women never worked before !

 

[Ausprop]

The ANZ Australian Property Outlook http://www.anz.com/resources/5/5/551...ff9f5b4fbd8721
says Australian house prices are not overvalued and that the measure of house price to income ratio is a flawed measure of affordability.

If this is the report I think it is, Money Morning takes the mickey out of it almost on a daily basis and I agree it was a really lame report. The way they have latched onto that poor reporter's justification of higher ratiosn due to the 'marvellous water views' is quite hilarious. I bet she rues the day she printed that.