The Entitled Generations

Being the school holidays again, it must be time for another troll to throw up some Think Tank propaganda about Negative Gearing and Capital Gains Tax to get us all frazzled. I'll start with a bit from the ABC website. It only barely mentions NG and CGT, but I can take bets that these will be discussed within the first three pages of responses.

Why every generation feels entitled

The article looks familiar but this is a recent one.

 

Yeah, then this morning, Channel 7 Weekend Sunrise said Housing Affordability is a Joke.

Haven't heard that before!!!!

 

related to this one:
No recommendations from two-year inquiry into housing prices

 

I don't know. I didn't watch it.

I am so sick of hearing that housing is affordable vs unaffordable that I switched off. Me, not the TV.

They said it was a joke and somehow, for the first time in my life, I believed them . Next thing I will be believing 60 Minutes.

 

"The real advantage for older households was that they were in the right place at the right time. They already owned assets when interest rates fell in a move that probably won't repeat for several generations. And this fall in interest rates pushed asset values upwards. By contrast, households aged 25 to 34 years typically bought both housing and superannuation assets at these higher prices, missing out on the free kick.

Everyone would like to believe that their prosperity is the result of hard work. And hard work by individual households does make a difference. But no generation really works that much harder than its predecessor. The reality is that luck has played a big part in creating a generation much wealthier than its parents, and probably wealthier than its children".

Well said. We are lucky we were born in Australia instead of Angola.

 

a ferrari enzo is completely unaffordable to me............

 

If you sold off a couple slums it wouldn't be

 

A smashed avo is unaffordable to me ......

 

In reality what could the feds do to reduce the cost which won't p!$$ off the majority of property owners. Let's just halve the cost of all existing properties and offer no compensation? I bet that'd be popular (well fhb might like it).

It's possibly more of a state issue to address as affordability factors differ between the states. A $300k 3/2/1+ house in Hobart/Adelaide is quite possible but unlikely in Melbourne or impossible in Sydney.

Addressing development costs may be possible however it comes at a cost to government agencies and the dividend paid back to govt

eg. Utility companies amortising the cost (or partial cost) of infrastructure over 40 years and recouping construction costs and maintenance from rates and charges rather than the developer paying upfront and passing the cost to the purchaser. If this made delivery of land cheaper but had higher rates when purchased it would be of greater benefit to owners paying mortgages.

It does create several other issues like who is going to deliver the infrastructure developers or utility provider? Payment to the builder of the services, cost of borrowing, difference between the cost of land in one land release and the next.

 

It is a joke In Sydney

In Perth it isn't. You're veing as dramatic as they are by having such a broad approach

 

Ironically Sanj, both the Sydney and Perth buyers arent laughing, for completely different reasons...

 

Actually many Perth buyers are very happy with how things are at the moment. Their mortgage repayments for a property offering similar lifedtyle in terms of local amenity, proximity, land and house type/size, is often half of those in Sydney while wages are only minutely more on average.

So a couple by definition would be able to survive on 1 wahe in many instances, or, put away double what people over there can.

Not everyone is obsessed with property values

 

Listened to an interesting discussion on the local ABC last week - about the spending of the current generation and their lack of housing affordability.

Rather than blasting the youth for not saving - or lamenting that housing is unaffordable - it discussed that maybe the reason GenY don't save to buy is because the media is lamblasting them with "housing unaffordability" so they are conditioned to "why bother trying", and so they spent it instead.

Need more stories on how people save and can afford - as it is being done and hence proving it can be done.

 

Like teaching kids at school in commerce or economics or maths ie financial education? It needs generational change.

 

Junior is taking commerce in year 9, next year. She loves playing Cashflow and has asked me to buy several copies for the class ... I have no hassles with that request

 

Sanj, I disagree. Most of the fellow members of PChat, possibly including your good self, although i can't be 100% sure, would probably be slightly disturbed should property values decrease nationally the way they have in Perth, or even some mining towns in WA or Qld.

Banks, being the definition of "fair weather friends", would also find such a turn south more disturbing, one would guess.

I understand that there will be a very interesting book being released in due course, by one of the PChat posters who has suffered such experience, detailing just how "friendly" they are, in this very circumstance, and the resulting rollercoaster ride...

 

a couple of slums or couple of slum suburbs????

 

Property tends to stay flat, leap suddenly, and go flat again so that fact that Sydney has jumped 40%+ in a low inflation/low wage growth environment should make one extremely weary of what it will do next. The reduction in interest rates has enabled borrowers to take on bigger loans, but with the expected rate rises, even though they are sure to be small, will dampen demand.

Remember the famous statement of John D Rockefeller: "nobody rings a bell at the top or bottom of the market, but when cab drivers and waiters start buying you know the end is near". Similarly not a week seems to go past where I don't read an article in newspapers about average joe's in Sydney accumulating multimillion dollar property portfolios.

 

Its ridiculous isnt it. And what does the government do about it? Makes it even more unaffordable with a luxury car tax!

Well Ive got kids and I need transport to pick them up from school. So why are ferrari's so unaffordable?

Sure ferrari's only have 1 passenger seat...and I dont have kids...but its still a crying shame that we have to miss out when every single baby boomer has a ferrari. Makes me sick!

 

it also doesnt make you feel any better when I saw a mclaren with P plates the other day !!!