Household Debt

[Bill James]

Last week the abc reported that since 1980 or thereabouts, the average wage had risen by about 100%, the median house price by about 400%.

Regardless of what structural changes have occurred to a ‘median priced house’ since the early 80’s, if your spending power is less buying a house (without being check mated by a bank for the next 25) - can’t be getting easier.

And interest rates are half what they were in the 1980s. For most people buying a house (they are the ones setting the price) interest is the major component of loan repayments so the ratio is not unexpected. But for me still not comforting.

 

[Tiger74]

I loved the stat that had 80% of kids expect their parents to help them get into a house, and (off memory for this one) around 40-50% expected zero to heavily subsidized rent while they live at home to save up for a deposit.

What is it with this handout generation? I don't understand how people cannot have money for a deposit, yet spend $100 a night when out on the town downing lolly water mixers.

 

[jb03]

I loved the stat that had 80% of kids expect their parents to help them get into a house, and (off memory for this one) around 40-50% expected zero to heavily subsidized rent while they live at home to save up for a deposit.

What is it with this handout generation? I don't understand how people cannot have money for a deposit, yet spend $100 a night when out on the town downing lolly water mixers.

You've got to enjoy life while you can I guess.

 

[Redford]

You've got to enjoy life while you can I guess.

How insightful.

 

[glantone]

An interesting little article on interest rates vs housing affordability.

http://www.abc.net.au/news/stories/2007/08/08/1999290.htm