Time for the Baby Boomer to Pay Their Way.....

Well said.

I think young people have less meaning in their lives currently. And I think they are being attracted to progressive ideology because of it. Eg. Climate change (no opinion), identity politics, open borders, a universal basic income. Actual socialist policies.

 

Most numbers I’ve have seen put Sydney at around 40% of household (that’s often 2 people).

Love to see the sources.

 

I walked straight into a blue collar job after leaving school 60k+ a year and that was 20 years ago, same job still exists but I have moved on people there now who work hard and put in the hours are 120k+. Majority are not on that coin but it is available to all. Of course they have no potential to earn more other than annual pay inflation will likely earn relatively less as they get older.

The fortunate people like you will start a bit later and earn less to start with but can grow skills and connections that will see you earn an ever increasing wage in a role that you can work till retirement age.

Don’t have to buy a 4 bed on a big block as first home, lots of places in Sydney that you can buy a 2 bed apartment under 500k and move on from there.

Of course if you don’t have the luxury of living with parents in early 20’s then things are much tougher but if people come to Aus with nothing find a way then the fortunate educated can

 

...cut down on other things and make the necessary sacrifices!
Make lunches to work, cook your own dinners, no travel overseas or at all for a year, buy less costly 'stuff' or presents, negotiate cheaper deals (phone, internet, etc..), cut on some subscriptions... many, many, many ways to do it.
I lived through 17.5% interest rates, just bought a PPOR then, spouse lost a job, so for 6 months on single wage, nearly 50% went on P&I loan...
Had to manage no choice, what options a human has? Find a way or give up?
As the saying goes...."If there is a will there is a way!".

 

Just had a google. Sydney is between 38-50% of household earning over last few years. Example from Shane Oliver
"In an ideal world repayments should be much less than [42 per cent of household income] – perhaps 30 per cent – but if people couldn't service their loans we would be seeing much higher delinquency rates," Dr Oliver said.

I think we just need to be careful of the “it can be done”. At 33 I made more than 250k. That job is “available” to anyone who can get it.

But I know that I’m just a lucky exception, not the rule. To get there I had private school, luck with employment luck with education luck with companies.

When we talk about younger generations we need to think of the whole generation. 90% will struggle to make 6 figures by 30.

It’s the 90% I care about. I worry we as a society are letting them down.

 

Brilliant as all my budgets are scaled for 6% rates. But thanks for your concern.

 

No no..they are letting themselves down within society.

That's the difference between taking personal responsibility or being entitled.

I personally know many kids who come from private schools, great parents, had all the opportunities and have done pretty much nothing with their life, financially speaking.

I also know many kids who came from average schools, broken homes and not given any hand outs who went on to become very successful with business/investing and career professionals.

In Australia we are very blessed that the overwhelming majority of people have equal access and equal opportunity to everything that's out there. People both young and old just need to take personal responsibility for their collective decisions in life.

 

In future we will have compulsory degree education, like primary school. Because it's getting so common. When we uncapped uni places, we almost did it

 

Anecdotal argument. Not interested.

 

The reason is because there is massive transformation to the Digital Age....we are now moving into a gig based economy...so you need to more of a entrepreneur. Too many people do not have these skills.

 

Slightly disagree with your 'luck' suggestion.... IMHO, it was 'opportunity luck' which you took advantage off.
Would your private school give you great marks if you did not study hard, did someone else find you the job or did you learn the skills how to negotiate and sell yourself at interviews, was this education just in your mind or you needed to plant it there by reading and doing, did those companies approach you and offered the job to you or gave you advances and pay rises because you were just there passing time or you did the hard yard (stayed back, read up more, did more, etc...).
You see to me luck can be defined in many ways, winning a lottery maybe instantaneous luck, but progressing a career ladder must be earned, IMO?
Everyone has this opportunity but unfortunately many don't understand it, we are not taught that at school.
This can apply to career, health, family, relationships to many aspects. Each one requires work, it required DOING, it is not some 'luck' or 'magic'.

 

Lets keep it that way shall we ....I want status quo of feudalism...to be maintained please.

I hear the word you were "lucky"....you were born with silver spoon. I now tell people I am trialing retirement of unemployed...as you get puzzled looks when I made the mistake that I am financially free! Best explanation is to tell them you are unemployed..but that causes a problem when they see you lead a normal life..travel..go restaurants....at that point...you need another excuse....I am related to Uncle Pablo?

 

Perfect. Confident that the highest household debt to gdp nation in the world won't crumble?

 

I could get smacked by a train tomorrow. I could be crushed today at work and die a horrible death.

Honestly the thing that scares me the most is sitting around waiting 40 years or so to enjoy life.

 

"Luck" - When preparation meets opportunity.

 

1) Please show me where I suggested a first home owner pay cash
2) Well of course. There were less people in the cities, it's supply & demand. Try a smaller city, like Wollongong maybe.
3) Funny, I know a few young people single income 2 kids purchasing their home.

Ah, there we have it. We're not at all interested in the truth of how those that have achieved some success did it. Just because you don't like it, doesn't mean it's not true, you know.

 

This will be a surprise for some PC posters:

Incomes grow faster than home prices

 

Sure prices dropping over night would help renters be able to enter the market, say something like 20%? Didn't we just have that correction? How low do things have to drop to suit FHB's? it makes no sense. Do we change the rules of 90% to suit the 10%?

I look at subsidizing as in the govt paying for some of the cost? its not, you just pay slightly less tax. They aren't giving you anything, your just giving less. and then end up giving ALOT more. the negative gearing debate is often misunderstood by people that don't own property, once you actually do you will change your argument no doubt.

So $700k is not enough, but then in most of your comments we shouldn't be taking on more debt? Which way is it? Also as I have mentioned before, close to 70% of Australia are owner occupiers that are buying for a home to live in, that keeps up with inflation. Not an investment hoping for double digit growth, it has always been this way. I have friends gearing up for the 5% scheme in Jan, I've just done the figures for them, new 3 bed townhouse in outer Sydney (not an investment, a home) with concessions, grants, and potentially the new scheme, they need $19,395 to get there first brand new home that they will be over the moon on, Repayments of $2245 a month vs currently renting at $2700 a month in the same suburb. It is so easy for the ones that choose to do it.

Il have to end there as whilst you make some good points, and I hear your concerns around the economy, you aren't interested in anything anecdotal yet apart from a few charts you post most of your arguments are based on your perspective and opinion and something that isn't yet fact, I understand its very hard to remove these biases and I'm not willing to try but I've enjoyed challenging my own thoughts so I thank you for that.

 

Sorry - was responding to this comment, which suggests paying cash.

"As far as I can see that path is still an option now, I know of people straight out of high school going to government jobs, or get stuck in at a blue collar job. Living with parents earning 80k+ a year till mid 20’s and really no excuse for not having a deposit for a house, could almost buy a unit cash at that point if invested well in the meantime."

 

As JR said:
- If you are not willing to risk the unusual, you will have to settle for the ordinary.
- If you don’t like how things are, change it! You’re not a tree.
- If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.
- It doesn’t matter which side of the fence you get off on sometimes. What matters most is getting off. You cannot make progress without making decisions.
- The worst thing one can do is not to try, to be aware of what one wants and not give in to it, to spend years in silent hurt wondering if something could have materialized – never knowing.