Move to Tamworth part deuce

Discussion in 'Four Corners' started by butchmcdick, Mar 13, 2017.

  1. Surely

    Surely Moderator Staff Member

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    Lucky he had a decent job then.

    I know to buy my first house I had to cut back on all that stuff, el cheapo diahatsu charade to save fuel rego and insurance., no holidays, the house was a real shitbox interest rates were about 16%.

    It became easier as I earnt more but the first 8 years sucked big time.

    And that was for a house in Petrie in Brisbane , considered the sticks at that time.
     
  2. Pete Cash

    Pete Cash Immortal

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    Yes he had a very good job. Like I said we had a comfortable middle class life. He made ludicrous money working weekends because of penalty rates something that is under attack even though labour has never been more productive.

    So people are more productive but earnings lag behind productivity increases. Housing is ludicrously expensive even in the sticks with a cost to wage ratio never higher in modern history. The vast majority of real wage increase since the 70s has been in the top 10 percent of incomes. Middle class wages have remained largely stagnant in real dollars throughout the west.

    Labour in the west has been squeezed to breaking point and what do they have to show for it ? Apparently a netflix account.
     
    Last edited: Mar 21, 2017
  3. bazza

    bazza Coach

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    Do you think that this experience was a good think Surely
    Do you think that people should all have to go through this? Should people have to sacrifice more than you for their own shitbox in the sticks?
     
  4. Pete Cash

    Pete Cash Immortal

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    Petrie is about as far away from the Brisbane CBD as Parramatta is from the Sydney CBD.
     
  5. Surely

    Surely Moderator Staff Member

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    Petrie in 89 / 90 was the sticks
     
  6. Surely

    Surely Moderator Staff Member

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    It was bazz ,teaches you not to piss away money if you want to own a house.
     
  7. Pete Cash

    Pete Cash Immortal

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    I know you are a big believer in the just world fallacy but its extremely difficult for young buyers to buy a place in the "sticks" of a capital city right now. Obviously they could move to Tamworth (with its high unemployment) but thanks to the current economic situation jobs are in the city. Its one of the things that frustrates "trump voters" the fact their children need to move away to find work. People dont apparently do this according to b dos so what would i know.

    Even in relatively cheap brisbane housing costs have outstripped increases in income.

    But lets say you are right and its all the fault of perspective home owners not willing to move into a box 90kms from their place of work. Does this matter politically if enough people get fed up and they start to vote in extremist parties out of anger. We have ludicrous household debt and in general income growth is not keeping up with housing. We are already a little angsty in the voting booth based on the collapse in primary vote of the majors.

    Now consider the fact we havent had a recession in 26 years if and it may not happen but if the housing market collapses in say western Sydney do you not think there might be political consequences.

    Why not deal with the issue before we end up with donald trump
     
  8. Surely

    Surely Moderator Staff Member

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    I'm not saying it's the fault of prospective buyers, just that unfortunately not everyone can afford to buy in Sydney , I left for that reason and so did many others. If you do want to buy though you have to sacrifice a lot to get into the market unless you are lucky enough to be in a well paid field.

    Of course it would be great if govts did more to decentralise or at least support Australian industry in regional areas, I just don't know how you keep expecting to cram people into Sydney affordably.
     
  9. Pantherjim.

    Pantherjim. Coach

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    Ah, the smashed avocado chestnut.

    Outstanding.
     
  10. sportive cupid

    sportive cupid Referee

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    What about your mother ?and her sisters ...what industry did they work in?
     
  11. sensesmaybenumbed

    sensesmaybenumbed Guest Moderator Staff Member

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    What about his aunts and neices, you insensitive blah blah blah....
     
  12. Pete Cash

    Pete Cash Immortal

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    My mother worked as a receptionist before she got fired for getting married. She was a stay at home mother. I dont actually know what my aunt did. I think her and her husband had a farm.
     
  13. Pete Cash

    Pete Cash Immortal

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    Well considering sydney is such a large chunk of our gdp having a huge chunk of the population in debt up to their eyeballs sounds like a situation that could cause some issues

    There are houses selling in the outer west for stupid money are being bought by regular middle class folk. So the question again has to be asked what is going to happen if we have an economic downturn and the market softens out west ?
     
  14. Surely

    Surely Moderator Staff Member

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    Houses would reduce in price

    Isn't that what you want though ?
     
  15. Pete Cash

    Pete Cash Immortal

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    And what if people start to lose their jobs because we go into a recession ?

    I want some air taken out the market which i believe has been encouraged by government policy to be fuelled by rampant speculation. I dont want the housing market to collapse. That would be shithouse for everyone
     
  16. Firey_Dragon

    Firey_Dragon Coach

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    You don't want reductions in price, you want a flatline in growth for a sustained period (ideally a decade or more)

    If we see wholesale reductions in property values, the impact on the economy would be cataclysmic considering the debt to income ratio Australian's as a whole hold.

    People are at a point where they can't even absorb a 50 basis point change in interest rates and there is historic lows in interest rates.

    Housing prices have doubled in less than a decade, if housing dropped in any significant way, that is a huge amount of debt people need to service without having the asset value to back it up. That would obliterate spending in the economy, the Australian economy is getting perilously close to the golden rule of the 30 year boom bust cycle in housing.
     
  17. sportive cupid

    sportive cupid Referee

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    ..or that he was born a woman like Pete's mum.
     
  18. B-dos

    B-dos Referee

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    how is this achieved firey?

    banks are heavily regulated and whack about 350 basis points on top of the current rates to demonstrate servicability

    if people cant absorb a 50 point increase they should sell the house

    fact is they can if they adjust their lifestyle
     
  19. sensesmaybenumbed

    sensesmaybenumbed Guest Moderator Staff Member

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    [​IMG]
     
  20. Firey_Dragon

    Firey_Dragon Coach

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    The same way growth or loss is achieved. Market conditions. Supply and demand. How is 100% growth in around 7 years achieved, when it far outstrips wage growth?

    Banks only verify that it is serviceable against 40% of your gross income. I didn't realize they do ongoing analysis of your debt after you've received a mortgage...

    What happens exactly when people 'adjust their lifestyle'? What is the effect on the economy? How many people have 6 month emergency funds in the event of a change in market conditions?
     

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