I thought this was a bit obvious when I first read it but reading it again I thought it might be worth posting. http://www.smh.com.au/comment/the-p...up-paying-off-your-house-20161018-gs5f3o.html
Is this a bank issue? Can you imagine what people will say if a bank declined a loan and said we don't think your wages will increase over time so, even though you can make repayments now, we are declining the loan.
well its really one of the reason central banks are fighting low inflation so hard. the current system needs some degree of inflation to boost wages and prices and reduce the debt burden over time. if the debt burden doesn't reduce you can't go back to consuming much as the years pass and as they mention business is less likely to borrow and invest.
The inflation of the 1970s turned the mortgage on our second home into a cake walk within about 3 years. Made our last mortgage payment at age 44. ,,,,and the Central Banks WANT inflation, not of 2% but 102% so they can wipe out all that debt ASABP. OC
Do you remember the year started? Is this your opinion on how it will play out this time round? - Only way to bail out banks is to bailout loan-holders. Can't see it playing out this way myself. I think politics requires dependency these days.
That's the madness I expect to see soonish. I had a friend who purchased a secondhand Datsun for about $2k. Drove it lots, serviced it and sold it 3 years later for $5k.
And yet we're told that all young people need to do to own a house is work harder, lower their expectations and stop eating smashed avocado.
Something different ... Real estate advice from the dying "IF A dying stranger told you their biggest life regrets, would you listen? UBank, NAB's online-only brand, is banking on consumers taking advice from those with a different perspective at the end of their lives. It will be rolling out a campaign featuring actual dying people sharing their wisdom with prospective homebuyers. The message? Borrow less money. Yes, a bank wants you to borrow less money. Shocking." read more at http://www.news.com.au/finance/real...g/news-story/ec011b94b5ac7b5df7cfca437c7a85b6
Call me cynical but... ...either they're trying to elicit some kind of emotional connection from customers that's somehow(!) lacking with a business that is almost entirely free of human interaction and runs on computer servers or... ...they're about to launch a new personal loan/credit card so people can really get out there and enjoy life at 1,000 basis points higher than the going home loan rate.
Yeah, because what this country really needs is a whole bunch of young people who have never been anywhere and have no appreciation for other places and cultures. They'll be really well suited for all the jobs in an economy that's rapidly shifting away from making stuff to providing services to the rest of the world.
I like it better when you're not being sarcastic. Why is this even a generational debate? From my perspective, if you want to live and work in a city then you take the good with the bad. There are squillions of older Australians who are in the same boat and can't afford a house in one of our major capital cities. It's about demand, affordability and its also about prioritising. You can't have everything in life, sometimes we have to sacrifice one desire for another.
Here is the best part: I constantly see interviews with young couples who say they can't afford a $1M house in Sydney. Then why don't you buy a $600k or $700k house further out instead No, they want to live in a trendy place next to their favorite coffee shop. Geeze. When we bought our house 13 years ago the bank would loan us $1M without even haggling. We borrowed $350k instead, bought modestly, and paid it off in short order and was then debt free.
Yep, but that doesn't put food on the table or pay for holidays. With hindsight I think we were much better off buying that cheaper house than the fancy McCastle that cost double and we would have paid a butt load more interest on it, and maybe would be still paying it off. Both types have basically doubled in that time, maybe the McCastle less so on average. In the mean time we have done a ton of other stuff with the extra cash like start a business and buy commercial property. Still debt free.
Shiney, "Maybe they should stop taking overseas holidays every year." We have a 26 year old grandson, caught 'the travel bug' and now goes overseas every year. $70,000 a year in the Army and saves not a cent! OC
SDJ, First house was a 3 bed, 1 Bath, 0 garage. 10 squares, TINY! Smallest and cheapest house in the street. Second house about 10 years later was twice that! Paid cash for the 3rd one. OC
In 1973, our peace loving muslim brothers had yet another go at the war-monger Israelis. Got themselves another hiding, and OPEC doubled the price of oil, then doubled it again a year later. Then Gough Whitless joined the party and gave the inflation rate a boost by giving everyone a HUGE pay rise (18%)?. That inflation paid off our house! OC
