But I've realised in the capital cities that the prices are insane. Even on very basic places. I'd be in a corner rocking with the stress of that much debt
Read the last Thomas Piketty book "Capital in the Twenty-First Century"
As a fellow accountant Im sure you'll enjoy it
He's a great economist and his book focuses on the concentration of wealth, and the long-term evolution of inequality in developed countries.
Here's an idea for the government to increase their revenue: sell all the HECS debts that aren't being paid off to debt collectors.
yes agree with credit being quite readily available. we were offered almost double our mortgage in terms of lending ability. which just made our eyes water. we bought well within budget and endured our home loan was serviceable on one salary. why borrow an amount just because the banks are offering it?
I do agree re housing affordability in capital cities. we're in an average area 11km out of the cbd and its def not flash, pretty daggy still if you ask me. and we were very fortunate to buy here! I know other couples in good financial positions now struggling to buy in this area. it does seem unfair.
if we'd had to, we'd have bought further out and got something we could afford then just pay it down as fast as we can. that's the beauty of having a mortgage you can easily service, it's easier to make extra repayments as you have excess cash and you're putting yourself in a stronger position in the long run. we're quite a bit ahead with our home loan and have had it for less than 12 months. that would not have been possible had we borrowed as much as the banks were willing to throw at us. but I guess that's their point, loan people crazy amounts then charge them insane amounts of interest.
I don't mean to sound ignorant or offend anyone, but people are talking about negative gearing like it's terrible because it only benefits the investor. What about parents who claim PPL from their employer and the government? I'm not saying that I think that's a bad thing because I actually don't, but that only benefits the person receiving the money as well. And I can go as far as to say, if you can't have a child without getting pay out of both, then you shouldn't be having said child.
Like I said, I'm not saying this to offend anyone, I'm just curious (and not very good when it comes to financials and how it affects society as a whole. When we negative geared our property for a few years, we weren't thinking about the country as a whole).
Or another idea - increase GST. I don't understand why that idea is now off the table.
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