Mortgage Repayments

I think the biggest problem with housing these days is people wanting to move out of home and immediately get a house in a good area and want to furnish it and buy a new car and have whatever else that their Mum and Dad took 20 years or more to accumulate.

We are paying off our townhouse and are almost finished in 7 years. We don't drink or smoke which helps. Three years of that I was at uni and earning bugger all too.

People seem to prefer to put all their money into renting a flash place when they could be paying off their own modest place.

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Originally Posted by Bushwanderer

Hi All,
I was a mortgage holder when the home loan interest rates rose to 17%.
Best Wishes,

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Loved those early nineties interest rates. By then I was an investor, not a borrower.

A very, very, wealthy friend of mine gets on his hobby horse when people want the government to act to keep interest rates low. He reckons government has no business looking after "brokes, bums, and borrowers". He calls them the lawful prey of the investor. He reckons government should be getting interest rates up and looking after the investor, whose money, he claims, is the fuel for the engine room of the economy. His wish is that the long term bank deposit rate should never be less than double figures.

Theoretical exercise - what is the "average" earnings?

$20 an hour?

Don't forget this has to take into account all the cleaners, janitors, labourers, etc. - you know, the "unskilled labour".

I'm pretty sure they outnumber the "skilled labour" something like 3:1 (my guesstimate, not based on actual fact).

You know the people, the ones society would collapse if they weren't there, but we try and ignore and say they shouldn't complain about their situation, if they just worked harder or went to uni they'd be better off.

$20 an hour x 8 hours a day = $160 a day
5 day week = $800 a week
52 weeks a year = $41600

That's GROSS, not NET. Gotta take out taxes, super, etc. etc. etc.

Somehow amongst all that they try and support a family and have to pay rent / food / electricity / gas / etc.

At the end of the day they have a few hours rest before getting up and starting it all over again.

I'm sorry but whilst I generally agree with stevo68 (please don't take this as a personal attack stevo68 as it's not meant to be) but in this regard I really feel he has his head in the clouds and he's been there too long it's distorting his view on reality (where reality == the majority normal working class).

Lets face it, it is hard out there. If you're in the above situation and renting then there is a good chance you'll never stop renting - unless you take one of the dodgy financial deals where you lend 105% of the value of the property and don't pay any deposit.

I'm not into handouts, I hate handouts - with a passion, but in the past few years (as has been stated) the housing market has exploded much much more than inflation / CPI / anything else can account for. Until our (meaning everyone's) income increases appropriately (which, by the way, will drive up everything else including bread and milk at the same time) then yes I don't see a major issue with helping those less fortunate than ourselves.

It's cliche, it's Marvel (Stan Lee / Spiderman) all over but it's true:

With great power comes great responsibility

We, as people have are affluent (whether we see it or not we are a lucky country and most of us have plenty of opportunities), have a responsibility to those less fortunate than us to help them.

EDIT: Add flame suite, top-up Bourbon, go back to watching 48 hours. Come back later to see how badly burnt I am :eek:

As far as interest rates go I would rather the government butt out, we have the economy in WA. going gangbusters and NSW down the toilet. From what I see the biggest problem in Sydney is the value of the property is not what people borrow on. For example there are houses around Kellyville for example where the cost to buy a couple of years ago was say $600k. Due to changed circumstances they find they have to sell and the self /same real estate agents now advise them that there property is really worth $350k hence the dissatisfaction. Just my thoughts on a very complex and disturbing problem.

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Originally Posted by Brian Hjelm

Loved those early nineties interest rates. By then I was an investor, not a borrower.

A very, very, wealthy friend of mine gets on his hobby horse when people want the government to act to keep interest rates low. He reckons government has no business looking after "brokes, bums, and borrowers". He calls them the lawful prey of the investor. He reckons government should be getting interest rates up and looking after the investor, whose money, he claims, is the fuel for the engine room of the economy. His wish is that the long term bank deposit rate should never be less than double figures.

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Brian

What does your spiv mate do?

The reason whe are getting more brokes and borrowers (I'll forget about the others because they're bums and nothing will help them out) is because there are too many Very Very wealthy spivs who make money from "jo battler" at any cost, and without morals.

There is solid evidence that one of the stabilising forces in society is home ownership, it is a form of insurance in people's dotage, an investment that will reduce the burdon on the public purse in the long term. The government's interests are well served by supporting low middle income earners create their own wealth by home ownership. Leave the credit card and other interest rates alone and let market forces do their work. There will still be whingers, bums and brokes but a good proportion of society and the economy will be better off.

Just my opinion

Diana

He was an apprentice cabinet maker who was sacked when he finished his time because of the building downturn caused by Menzies credit squeeze. He started self-employment by borrowing ten pounds from an uncle, paying a neighbour ten bob a week rent for a single car garage (1961), making one kitchen suite at a time, selling it to pay for the material, and eventually became a furniture manufacturer and then a commercial property investor. He says he never paid rent other than for that garage he started in, saved up to buy his first proper shed, never borrowed money to buy machinery, but saved up until he could pay cash. His only "luxury" once he was on his way was always having a decent car. His first house was in front of his first proper factory, and plywood, timber, veneer, varnish was stored under and on the verandah. A real Aussie success story.

Try 11.85% as of last week.....

1 bad debt and the bank hates me...

a repayment of $2600 a month when it should be about $1600

My fault and i live with it

here here Grizzly.

Stevo, your attitude to those less fortunate sometimes borders on condescending.
There will be many out there who genuinely struggle but have little choice. Some don't simply haven't the ability to further their education, but they shouldn't be trampled or left behind. They do deserve a break. Don't get me wrong I have no time for the sponges that bleed the welfare system, but being poor or poorly educated doesn't make them any less deserving of having the ability to put their own roof over their head.

11.85% :eek:

I'm on 7.85%

I've read this topic with interest.

Having just relocated from down south to north QLD I've had to re acquire a mortagage again to purchase our desired property. We are currently working our azz of to pay for it at about $500 per week.

My stepson moved up here about the same time. Broke, no cash, 2 litlte kids and a couple of other social handicaps.

He sniveled on his mother's shoulder at one stage and said he didn't "puss his money up against the wall".

Well, still renting, kids get stuff that anyone with a brain that was broke wouldn't buy, now go to a private skool, etc etc etc etc etc.

It will be a cold day in hell b4 he gets ANYTHING from me again. Thing is, we bent over backwards for the little darlings to give em everything and what has that got us.

A generation of kids that expect everything and will work for nothing, a generation of kids that will take advantage of 2 years interest free and then whinge when they get slugged with 18% interest, a generation that are flat out building the nations debt as fast as they can, a generation that largely have a f u attitude to society in general and simply do not understand allegiance and work ethic, a generation of kids who are largely ill educated, ignorant and arrogant.

Make no mistake about it. We are headed towards a recession, driven by the spoilt whingy whiney generation that we created. I trust we still have the integrity to put our hands up and shoulder our responsibility for what will beset us in the future!