The great Australian housing bubble creating a generation of poor youth

Definately harder now for FHB theres no denying that.

 

Honestly Australia needs a massive shake up. The time frame for that high speed rail is like 35 years or so. How can it possibly take that long??

Infrastructure projects always take longer than what was proposed even for simple things like a bridge.

My brother was telling me about the tunnels in Brisbane and how some of his mates were pulling around $250k a year to be electricians on the site because of all the allowances. Isn't that the most rediculous thing you have ever heard?

Basically we have too many rules, taxes, legislations and sooks in Australia and this is stiffleing the enterprising spirit that would help bring about more affordable housing and fix inefficiencies.

 

We are talking about a first purchase- not a life sentence, lets try to keep some perspective on this.

Ok but everybody has to leave their house and enter work. I live in concord and work in the city, it took me an hour to work in the rain this morning- I don't love it but I deal with it.

Im not asking you to fix anything, but please stay with us in the real world

Really? I don't own a PPOR. I invest where I want to invest and I live where I want to live and it seems reasonable to me. What seems completely irrational is that you do not expect young people to work hard, save a deposit and enter the market where and how they can afford to. I mean thats what I did, thats what most people I know do. My little brother is 22 and he is in the last year of his apprenticeship and he bought a property out west as an investment and he contributes about $50.00 each week. No doubt he would rather be in double bay, but tough life ay?

 

Yes that is right the tunnel was a great job for sparkies!! There is a shortage would australia have the labour to do a project like this??

 

Most households are now dual income.
Get a job that pays Travel Allowance so you're getting paid for your commute.
Give up some "stuff" in your life.
Move cities.
Work 2 jobs.
Rent for life attitude is going to go badly by retirement age. Who pays your rent for you when a piddly amount of Super runs dry? The Landlord part of me says "yeah rent for life, I'll take your money". The Taxpayer side is a different story. . . . .

Comments not aimed at anyone, just a general observation.

 

Yeah I agree with this. Its a long commute and if it becomes an issue then the individual needs to change it. If I was losing family time, I would just do what I do now and rent closer to my job and invest elsewhere or rent my place out. We are all responsible for our own circumstances for the most part and if there is a seemingly large issue like this then there are plenty of options. Some people have the mindset of- "nup I won't rent, I want to live in a house that I own" and thats fair enough but don't complain that your own home is miles away from your own work. Lots of us don't want to live in apartments or Townhomes, we want big backyards with picket fences. The reality is that this is not reality for many us anymore. We are shifting to higher density living as the Europeans and advanced Asian nations have already done.

 

Renting has absolutely no reflection on wealth or future prospects. In fact many high net worth individuals rent and advocate renting as opposed to buying a PPOR as there are many financial advantages and I would have to agree.

 

Oh I agree also. Rent where you want to live has many positive aspects. As long as you are doing something about said wealthy future prospects by investing the money you save week to week by renting. Many don't though.

I'm in the fortunate position where my mortgage repayments are cheaper than renting. I've transferred my job to cut my total round commute to less than 30 minutes a day. Also built my home within safe 5 minute walk to my daughters school. Optimised our family time. Life CAN be bent to your will with effort. Being in my 40's I'm a tad short on time to cry about how hard modern life is in the housing market. Just do what's best for you, and crack on.

 

Yes. Thats right...there are quite a few articles and data on this. A lot of the world also lives like this. Australia wont be any different because everyine wants to live in certain (limited) areas thus a concentration of demand. i would seek to position oneself to meet future demand.

 

100%

 

I'm pro renting. If i want a pool, i move somewhere with a pool. If im sick of looking after the pool, i can move to the beach. When im sick of the long commute, i can move near the city. All without any risk.

 

This certainly used to be the case... as money got cheaper, capacity got larger... but one of the APRA effects is that moving forward, even if rates are lowered, you will not see this translate to increased borrowing capacity on servicing calculators , due to the floor rates applied post APRA

 

I really wish this were possible... but this is Australia. The North West Rail Link, which is not even heavy gauge- took 17 announcements, cancellations, re- announcements, cancellations ... and is finally being built almost 2 decades later

And the Badgerys Creek Airport will not have rail... airlines like Qatar have already stated they will not use the airport as a result...

I dont really know whether its incompetence, cost, political short sightedness or what.... but Australia does not do infrastructure well anymore, other than motorways/toll roads.... It used to... the whole Sydney rail system was built after all... and when the country was less wealthy and had a far smaller population and tax base...but since the country got wealthy, we seem incapable of delivering anything...

Bottom line...if we built high speed rail in out cities, it would transform affordability.

 

So true. If they could start having a rail service in 1886 between Strathfield and Hornsby, without the aid of modern technology, how hard could it be? But I suppose land was much more available then. Now a lot of the rail line ends up having to be underground since land wasn't necessarily put aside for extra routes and services ..

 

Nope.

It's called "making a choice".

Pay down mortgage while DINK; then can afford on one wage while children come along...

OR

Party like it's 1999 while you pish your youth down the drain with a half arsed arts degree and taking stupid 4 day trips to Melbourne and Sydney every 3 months while working retail.

Oh wait....

That's not PC. EVERYONE should be able to do EVERYTHING. Silly me...

 

To receive a pension you need to live long enough. People who are young now will have a far lesser chance to make the pension age. I reckon that when they will grow old the pension will be available at 75 maybe 80. You have to have a lot of guts to live that long.

 

AVERAGE life expectancy for people born in this decade is between 80-84, how does living to less than the average = having guts?

I'm glad the pension age is being pushed out, it should be at least 70. when it was brought in initially it was based on people receiving it only a few years before they died on average, it was never meant to support people for nearly 2 decades on average

 

Pension age will surely change to 75/80 years in the next 30 years but aged pension is a transition from dole. Imagine someone over 50 being made redundant. They apply to a few dozen jobs and then go on dole and then onto aged pension. Need reforms to welfare and increase employment opportunities.

A colleague of mine was saying the other day how easy it was to get a job 2 to 3 decades ago. Apparently those were the days that one can choose to work when they wanted, take time off and when the money runs out, go back to work. This generation can only dream of something like that. Try to get 6 weeks off, don't know how many workplaces will be happy about it and not threaten job security. Job security is already a thing of the past. Casusallising is the new trend.

In 30 years time, very few will have a full time job. We may all have to share what little work is left. Gonna be interesting times for future generations.

 

I have met a lot of people who moved to a completely different country leaving their family and friends. I practically have no family in Australia. No one said it would be easy, it really depends on what each person want.

No one said it needs to be permanent though? People can go back to their "home" if they want to, again not always easy but not impossible

Something gotta gives. It doesn't have to be property but they need to start somewhere. Don't we all? It's ridiculous to expect that everyone can have everything all at the same time without much effort.

Agree with commute, it can be better. I commute 2 hours a day and I live 17 km from city. Unfortunately my profession is city based. It can be done remotely however companies that willing to do that can be counted by hand

 

Does anyone seriously believe that it will get easier if interest rates increase back to long term average levels?

"I still can't save a deposit even though I'm receiving 5% from the bank etc" - won't change a thing.