Monitoring the Impact of Trump on the World

[Neferti]

they are still getting more than I got...and still they complain they want more..

...we didnt look for a house in the middle of the CBD like they want today...we managed to get something with the bare essentials..no carpet light fitting or curtains..lucky to have door nobs....I read once where a couple with one child were upset because they couldnt afford the 5 bedroom house they had bought..in the posh neighbourhood of course...its got easier and easier yet the problems do not go away..sorry BO but to me they get married... big wedding and the next day want to move into their own home...I was married 12 years before that happened then we waited another 3 with sheets up at the windows...I cant see this generation doing that...... and we didnt have credit cards...

what more can be done for this generation do you think?...

Cods, it is not a matter about who got "more" from the Government or whatever. The problem is that young people in major cities can NOT afford a $1 million dollar "bedsitter", even with the interest rates almost nil. They do NOT want to move to be able to buy a house. I can understand that.

NOT everybody wants to live and work in Canberra where you can still buy a house for under $500,000. The VFT might solve that .... if ever they got it up and running. Most unlikely.

Perhaps we Aussies will have to change our attitude about "home ownership". In Europe, most people rent. There is absolutely nothing wrong with not being able to afford a Mortgage ... long-term rentals might be the way to go?

[cods]

they are still getting more than I got...and still they complain they want more..

...we didnt look for a house in the middle of the CBD like they want today...we managed to get something with the bare essentials..no carpet light fitting or curtains..lucky to have door nobs....I read once where a couple with one child were upset because they couldnt afford the 5 bedroom house they had bought..in the posh neighbourhood of course...its got easier and easier yet the problems do not go away..sorry BO but to me they get married... big wedding and the next day want to move into their own home...I was married 12 years before that happened then we waited another 3 with sheets up at the windows...I cant see this generation doing that...... and we didnt have credit cards...

what more can be done for this generation do you think?...

Cods, it is not a matter about who got "more" from the Government or whatever. The problem is that young people in major cities can NOT afford a $1 million dollar "bedsitter", even with the interest rates almost nil. They do NOT want to move to be able to buy a house. I can understand that.

NOT everybody wants to live and work in Canberra where you can still buy a house for under $500,000. The VFT might solve that .... if ever they got it up and running. Most unlikely.

Perhaps we Aussies will have to change our attitude about "home ownership". In Europe, most people rent. There is absolutely nothing wrong with not being able to afford a Mortgage ... long-term rentals might be the way to go?

we couldnt afford where we wanted to either and we had to buy in a new estate ..... we thought we were kings we didnt think we were hard done by
because we couldnt afford what we wanted..... the house prices may have beena lot lower but they were still out of reach..

[Neferti]

they are still getting more than I got...and still they complain they want more..

...we didnt look for a house in the middle of the CBD like they want today...we managed to get something with the bare essentials..no carpet light fitting or curtains..lucky to have door nobs....I read once where a couple with one child were upset because they couldnt afford the 5 bedroom house they had bought..in the posh neighbourhood of course...its got easier and easier yet the problems do not go away..sorry BO but to me they get married... big wedding and the next day want to move into their own home...I was married 12 years before that happened then we waited another 3 with sheets up at the windows...I cant see this generation doing that...... and we didnt have credit cards...

what more can be done for this generation do you think?...

Cods, it is not a matter about who got "more" from the Government or whatever. The problem is that young people in major cities can NOT afford a $1 million dollar "bedsitter", even with the interest rates almost nil. They do NOT want to move to be able to buy a house. I can understand that.

NOT everybody wants to live and work in Canberra where you can still buy a house for under $500,000. The VFT might solve that .... if ever they got it up and running. Most unlikely.

Perhaps we Aussies will have to change our attitude about "home ownership". In Europe, most people rent. There is absolutely nothing wrong with not being able to afford a Mortgage ... long-term rentals might be the way to go?

we couldnt afford where we wanted to either and we had to buy in a new estate ..... we thought we were kings we didnt think we were hard done by
because we couldnt afford what we wanted..... the house prices may have beena lot lower but they were still out of reach..

I KNOW, Cods. I was in a similar situation as you were BUT I was a divorced Mum of a little girl. No partner. I moved into my house (MY Mortgage with 10% deposit that I had to save up, so my daughter missed out on lots of things) and I didn't even have a bed. Friends gave me stuff .... I slept on a mattress on the floor for several years! We didn't even have TV.

Don't tell me about it not "being fair".

I really do not know HOW to solve the problem of home ownership.

My daughter (and SIL) bought her own home in 2012. It's in Charny and I did warn her against it but ...... *shrug* ... she saved up and got a 10% deposit saved and ONLY bought what they could "afford" rather than what they/he "wanted".

I taught her well.

[cods]

they are still getting more than I got...and still they complain they want more..

...we didnt look for a house in the middle of the CBD like they want today...we managed to get something with the bare essentials..no carpet light fitting or curtains..lucky to have door nobs....I read once where a couple with one child were upset because they couldnt afford the 5 bedroom house they had bought..in the posh neighbourhood of course...its got easier and easier yet the problems do not go away..sorry BO but to me they get married... big wedding and the next day want to move into their own home...I was married 12 years before that happened then we waited another 3 with sheets up at the windows...I cant see this generation doing that...... and we didnt have credit cards...

what more can be done for this generation do you think?...

Cods, it is not a matter about who got "more" from the Government or whatever. The problem is that young people in major cities can NOT afford a $1 million dollar "bedsitter", even with the interest rates almost nil. They do NOT want to move to be able to buy a house. I can understand that.

NOT everybody wants to live and work in Canberra where you can still buy a house for under $500,000. The VFT might solve that .... if ever they got it up and running. Most unlikely.

Perhaps we Aussies will have to change our attitude about "home ownership". In Europe, most people rent. There is absolutely nothing wrong with not being able to afford a Mortgage ... long-term rentals might be the way to go?

we couldnt afford where we wanted to either and we had to buy in a new estate ..... we thought we were kings we didnt think we were hard done by
because we couldnt afford what we wanted..... the house prices may have beena lot lower but they were still out of reach..

I KNOW, Cods. I was in a similar situation as you were BUT I was a divorced Mum of a little girl. No partner. I moved into my house (MY Mortgage with 10% deposit that I had to save up, so my daughter missed out on lots of things) and I didn't even have a bed. Friends gave me stuff .... I slept on a mattress on the floor for several years! We didn't even have TV.

Don't tell me about it not "being fair".

I really do not know HOW to solve the problem of home ownership.

My daughter (and SIL) bought her own home in 2012. It's in Charny and I did warn her against it but ...... *shrug* ... she saved up and got a 10% deposit saved and ONLY bought what they could "afford" rather than what they/he "wanted".

I taught her well.

OK!

[Black Orchid]

We all struggled to get our first home but it was still achievable back then but now in Sydney (closely followed by Melbourne) house prices have increased so much that it is not achievable for most young people, no matter what they go without.

Rents are astronomical which makes it impossible to even save a deposit and, as I said, a 2 bedroom absolute dump of a run down duplex recently sold near me for $2.8 Million. That is not achievable for most young people period no matter what they try to go without.

You cannot compare Sydney with Canberra where house ownership IS still achievable and you cannot assume that the young can just up and move and get a job outside a major city. That will only create a worse imbalance.

[IQS.RLOW]

Meh..Interest rates were always going to go up.
They have been at historical lows for a long time which has been aiding the real estate bubble and increased prices with cheap funding for loans.

If you havent been repaying like you had a rate of 7% over the last few years, then more fool you.

An interest rate rise should correct some of the real estate bubble by increasing the stock when those that mortgaged themselves to the hilt and cant afford a rate increase and those investors who suddenly find that their RoI has shrunk to levels where they are better off in stocks.

Trump may just help the markets return to a more normal level.

[mantra]

When I had a mortgage - I started off on 8% interest and ended up paying 18%. Now that I have a little extra cash - I get 2% interest. I would welcome a higher interest rate, but like most people of my generation, I bought a very modest home and was happy with that. If I had bought an expensive home - I wouldn't have managed my mortgage.

It is inevitable that interest rates will go up and those people who are mortgaged to the eyeballs will lose their homes. Thousands of people lost their homes in NSW when interest rates hit 18%. It will be a lot worse today because of the disparity between moderate incomes and huge mortgages. It will bring prices down of course only if the government applies more stringent regulation to foreign ownership. Under Turnbull - I can't see that happening.

[IQS.RLOW]

When I had a mortgage - I started off on 8% interest and ended up paying 18%. Now that I have a little extra cash - I get 2% interest. I would welcome a higher interest rate, but like most people of my generation, I bought a very modest home and was happy with that. If I had bought an expensive home - I wouldn't have managed my mortgage.

It is inevitable that interest rates will go up and those people who are mortgaged to the eyeballs will lose their homes. Thousands of people lost their homes in NSW when interest rates hit 18%. It will be a lot worse today because of the disparity between moderate incomes and huge mortgages. It will bring prices down of course only if the government applies more stringent regulation to foreign ownership. Under Turnbull - I can't see that happening.

You will have to learn never to vote Greens or ALP if you don't want to see 18% interest rates again.

[Outlaw Yogi]

Trump's new defence secretary isn't called "mad dog" for nothing. I can see China already prepping their army. Australia will be piggy in the middle because we've been stupid enough to give China a 99 year lease to Darwin Port - which is America's main access to their Darwin military base. We can look forward to fun and games, but not for our young soldiers.

China's army may be big, but it's piss weak. They have no troops with combat experience bar a few officers that got beaten in a border skirmish by Vietnam.
Currently China's main strategy is to bluff while stealing and copying other's technology and military advantages.
China recently stole the specs on U$A's F-35 and stealth fighter details.

China’s Copycat Jet Raises Questions About F-35
http://www.defenseone.com/threats/2015/ ... at/121859/

America's F-35 Stealth Fighter vs. China's New J-31: Who Wins?
http://nationalinterest.org/blog/the-bu ... wins-13938

Not long after U$A introduced it's stealth bomber OZ neutralised it with our over the horizon radar (OHR).
Conventional radar signals bounce off the under-side of the plane, but OHR bounces the signal off the ionosphere, spotting the craft from above. Meaning we can see China's stealth aircraft too.

China has a battalion devoted entirely to cyber-theft/hacking and surveillance, but still can't match the Ruski's.
Probably China's most advanced weapon is the Russian Shivkal underwater missile, designed for taking out aircraft carriers but can be used as an ICBM to take out cities. The gas bubble shroud used by Shivkals to evade sonar detection has been copied by the US and employed on the submarines for the same purpose.

I suspect China's only real advantage lay in indoctrination of its people and troops, giving them devotees not unlike WW2 Japanese kamikazes or IS suicide bombers, and plenty of them to sacrifice as cannon fodder.

[Outlaw Yogi]

If you want low interest rates, go to the Arab Bank (in OZ) or do like my old man did, borrow from Singapore.
But if like me you don't want to deal with tent heads or go off-shore and you still want to own your home, you pretty much have to follow my lead by abandoning the cities/suburbs and buying in the bush, then you can have space on the cheap. And don't have the council on your back to cut the grass. I don't even have to put a bin out.
Admittedly there's disadvantages (ie tyranny of distance) but buying in regional cities and/or towns is becoming cost prohibitive too these days. With houses in such places with $300K+ asking prices. Although a damn site better than the $920K median price in Sydney.
Note: 'Median price' = a 30-40 year old house in the western suburbs ... likely to be not much more than a fibro cottage with a terracotta tile roof. Certainly not my idea of 'value for money'.