Mortgage Repayments

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3rd March 2008, 10:14 AM
dobbo

Quote:

Originally Posted by chunk

4; ls it only people over the age of 40 that are allowed to buy a big screen tv! jesus god help, theres no law that says people have to own a house to succeed, you'd be better off putting it all in your super and enjoying life.

See above quote in red,The Great Australian Dream, most Australians are told from a young age to buy a house as soon as they can no matter what.

The average person/family that lives in rented housing is looked apon as failures by most people that do own homes. Think about it how many times have you heard your parents say to someone "my Johnny ownes a nice house at so and so " if Johnny was renting they would say he lives at so and so, they would never say he rents a house.

Basically people are pushed into buying homes and furnishings they can't afford so that they don't look like failures to there families and friends.

I don't consider not owning a home a failure, I just cannot see the point in paying for someone elses house or assisting in paying for their retirement.
3rd March 2008, 10:28 AM
BigJon

Quote:

Originally Posted by dobbo

I don't consider not owning a home a failure, I just cannot see the point in paying for someone elses house or assisting in paying for their retirement.

I think the logic is if you rent at a lower cost than paying for a home loan and all the associated outgoings (maintenance, etc) AND you put the savings (difference between rent and mortgage price) into high return investments, then at the end of 30 years (or whatever) you could be better off financially.

I can certainly see merit in this point of view. The trouble is the vast majority of people WON'T save / invest the difference. They will SPEND it.

Buying a house is both a way to invest and also effectively a way to save. If the money is going on a mortage to buy a house that in all likeliness will go up in value, or at worst stay the same value, then it isn't being spent on "junk". The "savings" can be accessed at a later date, if required, by selling the property.
3rd March 2008, 10:29 AM
BigJon

Quote:

Originally Posted by dobbo

What you could go on a float in Sydney on 1st March?

I was thinking he could be Superman, but your idea works too :p.
3rd March 2008, 10:34 AM
numpty

Quote:

Originally Posted by stevo68

I would disagree that a large proportion of posts are saying that success is measured in terms of salary and being able to service one's mortgage. I would also disagree with the fact that some people choose careers that are low paid and the point that it has been overlooked...it hasn't...that is a given. Also what is the focus on nurses, I have known a few nurses and they are definately not in poorly paid positions, unless $50k+ a yr is poorly paid. The average wage is around $35k.
Regards

Stevo

You're way off the mark here......the average wage these days is around $55,500, which makes a profession such as nursing "a poorly paid position", in the overall scheme of things.
3rd March 2008, 10:46 AM
stevo68

Quote:

Quote:
Originally Posted by stevo68 https://www.aulro.com/afvb/images/im...016/08/768.jpg
I would disagree that a large proportion of posts are saying that success is measured in terms of salary and being able to service one's mortgage. I would also disagree with the fact that some people choose careers that are low paid and the point that it has been overlooked...it hasn't...that is a given. Also what is the focus on nurses, I have known a few nurses and they are definately not in poorly paid positions, unless $50k+ a yr is poorly paid. The average wage is around $35k.
Regards

Stevo

You're way off the mark here......the average wage these days is around $55,500, which makes a profession such as nursing "a poorly paid position", in the overall scheme of things.

Yikes wages have gone up since I last checked. However that is a bloody good average wage, if you have 2 people working on an average wage that is over $100k a year. If it is such a poor wage for what seems to be centring on nursing, what would be a fair wage then? If you look at other professions, many are earning that same sort of wage, accountants, solicitors, engineers etc, so why is it that a nurse on the same wage is poorly paid? Sorry don't get it. To me a poor wage would be well under $40k p.a,

Regards

Stevo
3rd March 2008, 10:56 AM
Utemad

Quote:

Originally Posted by BigJon

I think the logic is if you rent at a lower cost than paying for a home loan and all the associated outgoings (maintenance, etc) AND you put the savings (difference between rent and mortgage price) into high return investments, then at the end of 30 years (or whatever) you could be better off financially.

That is a plan that I considered but the problem I think is people have a certain amount of money to spend. $500 for example. They think if I rent I can get this awesome place but if I buy I can get this so so place. So there might not be any money left over to invest.
3rd March 2008, 11:01 AM
numpty

It's not a bad wage per se, but as I said, in the scheme of things, comparing it to the "average" wage, and there are not many couples with two wages of that amount who are setting up a home and having children. Also if you look at what a nurse is expected to do to earn a wage at all, is it any wonder they leave the profession in droves. Their choice of course:p.

Most engineers, accountants and solicitors that I have had anything to do with are doing better than that, and what about tradies in the building industry. I am not trying to turn this into a nurses only thread, (there are others who can take up that cause), just pointing out what obviously a lot of people miss in going about their own existence.
3rd March 2008, 11:01 AM
BigJon

Quote:

Originally Posted by chunk

Basically people are pushed into buying homes and furnishings they can't afford so that they don't look like failures to there families and friends.

They need higher self esteem, not a flash house!
3rd March 2008, 11:02 AM
BigJon

Quote:

Originally Posted by numpty

You're way off the mark here......the average wage these days is around $55,500, which makes a profession such as nursing "a poorly paid position", in the overall scheme of things.

Correct, I think I referenced the average wage as stated by the ABS earlier. November last year it was $1109 per week.
3rd March 2008, 11:07 AM
BigJon

Quote:

Originally Posted by Utemad

That is a plan that I considered but the problem I think is people have a certain amount of money to spend. $500 for example. They think if I rent I can get this awesome place but if I buy I can get this so so place. So there might not be any money left over to invest.

Yep, and therein lies the problem with that line of thought.

People these days (get ready for a simple generalisation, I realise there are exceptions) no longer have the skill / art / mindset of delayed gratification.

"I want it all and I want it now" seems to be the thought process of many people.
It has been noted that banks and other money institutions make it too easy to borrow money and that is when people get into trouble.
As far as I am concerned, all the banks are doing is catering to what the market wants. People should self regulate their borrowing habits, not expect someone else to do it for them.

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