Easier in the 90's???

Saw this on Nathan's Facebook page just now.
Oh, things were easier in the 90's you... - binvested.com.au | Facebook

 

Could just update the numbers/dates and run the same story - Except this article says something about first home buyers lowering their expectations, first home buyers don't want to hear that they have anything to do with their problems.

 

What? It clearly says 1988, which we know following the '87 share market bust was a home credit binge 88-89

 

Ah but in the 90s you were buying it for half those prices.

 

You had to have a job in the early 90s to buy anything. Oh and a decent deposit and savings history.

 

If you click on the link it states that. But I wouldn't put it past Stef to make that mistake.

 

I always post this up on FB when people say housing is unaffordable or that investors are pushing FHOB's out of the market.

But at close to triple the interest rate...

Is it that any different to now?

 

Correct.

Didn't Joe Hockey get flamed for saying: "To buy a home you had to have a good paying job"?

He was merely telling the truth. Try getting a home without that - and a savings history (for your deposit).

But no; those words were too harsh.

 

Well written Nathan
X

 

I was trying to be sarcastic, the early 90s recession absolutely smashed the jobs market which took years to recover. So in that regard with double digit unemployment it was very different. Having and holding onto a job was much harder.

In terms of a deposit FBers needed a real one and a genuine savings history, not the FBers grant and only 5% saved. Admittedly prices were much lower revelative to incomes but much higher SVRs meant repayments crippled cashflow unlike the current situation.

 

Prices were lower compared to household incomes but banks would only lend on the male's income, wife's income was essentially ignored - so serviceability was about the same as today's household income afforability.

 

Kind of.
Unemployment was really high.