I agree that property in the good areas of Aus will be expensive for a long time, rents the same.
Even in that environment people will make decisions that bring them personal and financial hardship, usually greed or not thinking things through will be the cause.
When we buy assets on a high margin or leverage we can also leverage our emotions to it to. A small rise or fall in prices causes a feeling that it also leveraged. In these circumstances our reactions are also leveraged and can be an over reaction.
The majority of property owners have healthy levels of gearing and see things for what they are and just go along with life. The excitement of a boom or the down talking of the asset classes have little impact on our emotions and are seen in a perspective.
On another issue. In the last 6 months I took a PPT job in order to add a reliable income stream to supplement my business as I felt that my business may be adversely impacted in some areas in the next few years.
At this job (which I really enjoy) there are so many people I get talking to and I am amazed at the number of people that are battling and want to get ahead but just do not know how to save. The outcome is an ASTOUNDING level of them that have given up and are working so that they can fund their poker machine playing activities. A lot of them genuinely think that gambling is the way out.
Interesting also, the majority spend so much money and time on smart phones, take-away food and financed cars. They also pay high rents or live with parents.
I find this a bit disturbing but maybe it is just normal in our society and I have been out of touch.
I think that reading posts on HC give us an unrealistic impression of the financial savy of Aussies. The reality is somewhat different out there.
Unfortunately, we may end up in the future with a clear distinction between the haves and the have-nots in our country.
It is sad that we don't get taught financial skills early in our lives.
