Why not raise taxes to slow inflation?

[kranky al]

We weren’t buying houses with home theatres, en suites and garaging for 4 cars
We were (and this is true of my siblings and in laws at the time) buying war service and ex housing trust homes.

There’s one reason houses are dearer now.

Our mortgage was based on my income alone and repayments could not exceed 30% of gross monthly income.

This idiotic trope.

People who buy these houses aren’t on minimum wage / low income.

People who buy a house with a four car garage and theatre room do so as they make an income that coincides with this level of spend.

My dad bought his first house in subi, 4 bed, 1 br outdoor toilet and he was studying full time and working part time, mum was a part time hairdresser.

It’s not the same.

 

[evolved2]

3.6 vs 5.4 times the wage.

Let’s extrapolate that.

View attachment 1778154


You would repay a total of 7.55 times your yearly wage at 7% interest rates


View attachment 1778158


The total repayment calculated at 3% interest is 11.41 times $65000

Which variables did you use?

 

[Bluelegs]

We weren’t buying houses with home theatres, en suites and garaging for 4 cars
We were (and this is true of my siblings and in laws at the time) buying war service and ex housing trust homes.

There’s one reason houses are dearer now.

Our mortgage was based on my income alone and repayments could not exceed 30% of gross monthly income.

This argument falls apart when you take out the house and just compare the prices of land over time.

 

[kranky al]

Which variables did you use?

7% interest for your first house at the value listed.

3% for your first house today at the lowest value you listed.

No fees in either.

 

[DaBarz]

This argument falls apart when you take out the house and just compare the prices of land over time.

It’s all comparable
You can still get cheaper land further from CBD.

Regional areas land is still affordable.

Our first home was in what was then considered outer suburban.

 

[Seeds]

No, we do … insurance is a bigger scam
then the banks…
Trillions of dollars in premiums and when they have to pay up they just increase premiums.

12millon houses paying $120 a month…
A few thousand house get burnt or flooded and the premiums double.

Massive scam.

Do you even understand what point you are arguing anymore? We are arguing over whether the public should bail out the banks during the crisis or make the banks pay insurance with the insurers bailing out the banks during a financial crisis. If you think insurance are scammers (whatever that means) then wouldnt you want insurers to pay the banks for a bailout and also want the banks to pay for insurance. Isnt this a win win? Both the banks and insurers have to pay up and the public doesnt? Why are you disagreeing with this?

 

[DaBarz]

This idiotic trope.

People who buy these houses aren’t on minimum wage / low income.

People who buy a house with a four car garage and theatre room do so as they make an income that coincides with this level of spend.

My dad bought his first house in subi, 4 bed, 1 br outdoor toilet and he was studying full time and working part time, mum was a part time hairdresser.

It’s not the same.

That’s what I’m saying.
The houses were not what first homebuyers now expect and their income does not match those expectations.
Check out the house and land packages here
All multiple living areas - 3-4 bedrooms - 2 bathrooms
They’re not the 2 bedrooms with a sleep out these days are they?

House and Land Adelaide (SA) | Hickinbotham Homes

Hickinbotham takes the hassle out of building your new home by offering house and land packages in some of Adelaide's best locations

hickinbotham.com.au

Further away from Adelaide the cheaper they are.

So I guess the “idiotic trope” isn’t so idiotic.

 

[kranky al]

That’s what I’m saying.
The houses were not what first homebuyers now expect and their income does not match those expectations.
Check out the house and land packages here
All multiple living areas - 3-4 bedrooms - 2 bathrooms
They’re not the 2 bedrooms with a sleep out these days are they?

House and Land Adelaide (SA) | Hickinbotham Homes

Hickinbotham takes the hassle out of building your new home by offering house and land packages in some of Adelaide's best locations

hickinbotham.com.au

Further away from Adelaide the cheaper they are.

So I guess the “idiotic trope” isn’t so idiotic.

No it is idiotic, the people locked out of the housing market arent looking at McMansions.

A 2x1 home unit as discussed in the example given is unaffordable

 

[DaBarz]

No it is idiotic, the people locked out of the housing market arent looking at McMansions.

A 2x1 home unit as discussed in the example given is unaffordable

You don’t get it do you.
What was affordable back in the day , were homes in outer suburbs or needing renovation.

Even the house and land packages being sold as affordable in outer suburbs are 3-4 br 2 living and 2 bath. They are out there.

How many young people wanting to buy into the market had gap years?
Went overseas ?

It’s a whole different mindset now. You can still afford a home - there just has to be an element of sacrifice - whether that’s the type of house you want or the location / or choosing to save a deposit or buy a flash car and do 6 months in Europe.

 

[kranky al]

You don’t get it do you.
What was affordable back in the day , were homes in outer suburbs or needing renovation.

Even the house and land packages being sold as affordable in outer suburbs are 3-4 br 2 living and 2 bath. They are out there.

How many young people wanting to buy into the market had gap years?
Went overseas ?

It’s a whole different mindset now. You can still afford a home - there just has to be an element of sacrifice - whether that’s the type of house you want or the location / or choosing to save a deposit or buy a flash car and do 6 months in Europe.

You dont get it my friend.


My father bought a house a couple of km from the city whilst studying full time.

Even if you move to the outermost suburbs of perth a couple on minimum wage full time cant afford a home.


Their only chance is to move to the regions and buy a house -which means their parents can’t assist with babysitting / child minding - which cancels out the benefit of moving with child care costs.

 

[evolved2]

You don’t get it do you.
What was affordable back in the day , were homes in outer suburbs or needing renovation.

Even the house and land packages being sold as affordable in outer suburbs are 3-4 br 2 living and 2 bath. They are out there.

How many young people wanting to buy into the market had gap years?
Went overseas ?

It’s a whole different mindset now. You can still afford a home - there just has to be an element of sacrifice - whether that’s the type of house you want or the location / or choosing to save a deposit or buy a flash car and do 6 months in Europe.

Agree. My first place was in outer suburban Melbourne, and the boundaries have shifted because Melbourne has grown.

The new outer Melbourne suburbs like Melton and Pakenham are still affordable. If the whinging youth refuse to buy in affordable suburbs, I don't consider that my problem.

 

[evolved2]

You dont get it my friend.


My father bought a house a couple of km from the city whilst studying full time.

Even if you move to the outermost suburbs of perth a couple on minimum wage full time cant afford a home.


Their only chance is to move to the regions and buy a house -which means their parents can’t assist with babysitting / child minding - which cancels out the benefit of moving with child care costs.

Weird comparison. Has Perth grown since then?

 

[DaBarz]

You dont get it my friend.


My father bought a house a couple of km from the city whilst studying full time.

Even if you move to the outermost suburbs of perth a couple on minimum wage full time cant afford a home.


Their only chance is to move to the regions and buy a house -which means their parents can’t assist with babysitting / child minding - which cancels out the benefit of moving with child care costs.

I have no idea how a student managed to get a mortgage unless there was a sizeable deposit.

So now you seem to think childcare is a problem in the outer suburbs - is that right ?
There are childcare centers EVERYWHERE these days and they are being built where young families are.

Again. If it is financially unviable then sacrifices have to be made. Work an extra 2 years before having a family for example.
Honestly
How much hand holding do these poor unfortunates require ?

House and Land Packages Perth | Blueprint Homes

Blueprint Homes makes finding a house and land packages in Perth easy with packages available in 200+ Locations • View House & Land Packages!

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I will concede that if you are currently renting the ability to save for a deposit is an issue - I also believe Morgtage Lenders Insurance is an abominable burden that should be borne by the lender

 

[kranky al]

Weird comparison. Has Perth grown since then?

Yeah perth is funking massive. Hundreds of kms

I will concede that if you are currently renting the ability to save for a deposit is an issue - I also believe Morgtage Lenders Insurance is an abominable burden that should be borne by the lender

yes just the small issue of trying to save for a mortgage - while rents are more than a mortgage payment.


As for the childcare centre - that’s a let them eat cake comment.

 

[JackOutback]

Are sad Boomers still trying to argue they had it just as tough and lazy kids today just need to sacrifice more? The median salary in Australia is $79,800, the median house price is $880,000. So unless the average house was 10 times the average salary ‘back in the day’, you’re talking bollocks. Of course there are cheaper houses and there are people earning smaller wages, but the averages tell the story. Record rents also mean saving is much more difficult than it was.

 

[DaBarz]

Yeah perth is funking massive. Hundreds of kms


yes just the small issue of trying to save for a mortgage - while rents are more than a mortgage payment.


As for the childcare centre - that’s a let them eat cake comment.

It’s anything but a let them eat cake comment.

You have the children why does the rest of the country have to pay to look after them?
Taxpayers / including those on minimum wage / are paying for the outsourcing of raising a family until that family’s income exceeds $530,000.

It’s ridiculous. So the let them eat cake comment should be directed at those families who earn almost half a mill but choose to put their kids into care.

https://www.servicesaustralia.gov.au/your-income-can-affect-child-care-subsidy?context=41186#familyincomeccs

So both parents can keep working to pay the mortgage. Again
How much hand holding is needed ?

 

[kranky al]

It’s anything but a let them eat cake comment.

You have the children why does the rest of the country have to pay to look after them?
Taxpayers / including those on minimum wage / are paying for the outsourcing of raising a family until that family’s income exceeds $530,000.

It’s ridiculous. So the let them eat cake comment should be directed at those families who earn almost half a mill but choose to put their kids into care.View attachment 1778646

https://www.servicesaustralia.gov.au/your-income-can-affect-child-care-subsidy?context=41186#familyincomeccs

So both parents can keep working to pay the mortgage. Again
How much hand holding is needed ?

House values have gone up exponentially whilst the minimum wage has been deliberately allowed to fall behind inflation.

The only hand holding is two hands holding low income folk back.

Thirty years ago a couple on minimum wage could afford a 2x1 home unit close to work quite comfortably.

You are fos.

 

[DaBarz]

House values have gone up exponentially whilst the minimum wage has been deliberately allowed to fall behind inflation.

The only hand holding is two hands holding low income folk back.

Thirty years ago a couple on minimum wage could afford a 2x1 home unit close to work quite comfortably.

You are fos.

You keep coming up with bizarre statements without any facts or figures.
What is “close to work” for example ?
What was minimum wage 30 years ago ? Since 2010 the minimum wage has increased pretty much in line with CPI thanks to the FW Act and until 12 months ago interest rates were at historical lows.

What was the cost of the unit?
Was their mortgage approved on the basis of one or two incomes?

A couple on minimum wage now is earning $1756 pw ($882.80 each)

7% rate on loan of $400k is $2661 pm- $665 pw

It is do-able

 

[DaBarz]

Are sad Boomers still trying to argue they had it just as tough and lazy kids today just need to sacrifice more? The median salary in Australia is $79,800, the median house price is $880,000. So unless the average house was 10 times the average salary ‘back in the day’, you’re talking bollocks. Of course there are cheaper houses and there are people earning smaller wages, but the averages tell the story. Record rents also mean saving is much more difficult than it was.

Ok
$566 pw is $29432
10 x that is $294320


Seems to fit well within your 10 x ‘s parameters

 

[Nuggs Bunny]

I will concede that if you are currently renting the ability to save for a deposit is an issue

Heyyyyyy we got there in the end. I had my doubts but shags here figured it out

 

[DaBarz]

Heyyyyyy we got there in the end. I had my doubts but shags here figured it out

So what do you want ?

 

[kranky al]

You keep coming up with bizarre statements without any facts or figures.
What is “close to work” for example ?
What was minimum wage 30 years ago ? Since 2010 the minimum wage has increased pretty much in line with CPI thanks to the FW Act and until 12 months ago interest rates were at historical lows.

What was the cost of the unit?
Was their mortgage approved on the basis of one or two incomes?

A couple on minimum wage now is earning $1756 pw ($882.80 each)

7% rate on loan of $400k is $2661 pm- $665 pw

It is do-able

 

[kranky al]

So what do you want ?

The withdrawal of negative gearing for properties rented as air BnB for a start.

1600 Australians become homeless each week because of the rental shortage.

Source: More than 1,600 Australians pushed into homelessness each month as housing crisis deepens, report finds | Housing | The Guardian

Yet our threads resident Marie Antoinettes’ are arguing that low income earners can buy a house.


They can’t even rent a funking house!!!

 

[DaBarz]

View attachment 1779509

Do you have the link for this please

 

[kranky al]

You keep coming up with bizarre statements without any facts or figures.
What is “close to work” for example ?
What was minimum wage 30 years ago ? Since 2010 the minimum wage has increased pretty much in line with CPI thanks to the FW Act and until 12 months ago interest rates were at historical lows.

What was the cost of the unit?
Was their mortgage approved on the basis of one or two incomes?

A couple on minimum wage now is earning $1756 pw ($882.80 each)

7% rate on loan of $400k is $2661 pm- $665 pw

It is do-able

Mortgage lenders work on 30% of your income.

I get that you think they could do closer to 50% - I mean that’s what rent is.

But no, lenders won’t let you have a repayment that’s 50% of your income.