One cannot compare paying 2.5 times average wage for a House to the 12.5x + Average wage it is now,
And say it was all because of your hard work....
It was also good luck as it was a better time
It was easier and more affordable to Buy a House back then.
One cannot say the later generations are just whining and eating Avo sandwiches,
And if they stopped eating out and worked harder it would all be fine.
It is not the same as it was back in the Day.
It is much harder for people to afford 12.5 times their wage than the 2.5x it cost Back then.
If it took some people 2 jobs back then it would be like working 10 jobs now,
Which is impossible,
As there are not enough hours in the Day.
The new generations are not whining and would just like the same opportunity as the Boomers got.
They would be happy and capable of buying a House at 3.5x Average wage,
Just like many of You did back in the Day !!!!
This is why their is so much trouble with the newest generation,
They feel that they will never be able to afford a House,
And that no matter how hard they Try,
They could never afford to Buy a House.
So many give up on a society that gave up on them,
And sold their futures down the river....
It really was only the Boomer generation that benefited from this,
Future generations are all much worse off.
It is not necessarily their fault though,
It was policies to Buy their Vote,
Which was done by many different policies to prop up House Prices.
This made them for lack of a better word the "Boomer" generation,
Feel like things were on the Up and Up,
As their House Prices went Up and Up.
Of course they would want this,
Who wouldn't want their Investments to go up?
Unfortunately so did wait times at the Hospital,
The amount of Traffic Jams,
Crime, and
Inflation.
It is really sad that they think / thought that Housing,
Is our entire Economy.
Most of our Economy is Mining.
The real answers are to get House Prices for a starter home,
Back to a sensible multiple of Average wage.
Some ways to do this are:
End Negative Gearing,
Increase Interest rates (averaged around 6.8% for the last 30 years)
Ban Foreign Investment
Only approve affordable developments and subdivisions (with agreed max. price for Land Etc.)
They need more Land Approved,
So let normal people subdivide.
Let people within a hour of a Rural Town Subdivide.
Negative gearing should have to be paid back,
Once a property is Positively Geared.
Interest rates should not have gone below 5%,
They were too low for too long so people borrowed more than they otherwise would have.
Banks should not have lent to anyone who could not afford 10% interest rates,
as that is very likely to occur at some point in 30Years,
As History shows us.
Properties should not have been overvalued,
No loans should have been given on properties that rose 50%+ in 2-3Years,
People that wanted to gamble like that,
Should have had to use their own money.
Banks should not have lent on such a High risk Gamble.
Or Overvalued entire suburbs because a few Houses sold for 50%+ more than normal.
The entire suburb is not worth more....
It sure makes the Banks Valuation look good though.
Can people see what's going on here?
One House selling for 50% to Double,
Does not mean Everyones House is worth Double,
But these are the games being played.
Who benefits from this?
So if one or 2 Houses sell for 50% more,
Should every Landlord put up their rent 50%?
Is the run down shack down the road suddenly worth 50% more?
They should also look into the Price Gouging of Building Supplies,
Issuing massive Fines to those who are Price Gouging,
Using the proceeds of such fines to Build Affordable Housing.
They do need to Build More Public Housing,
It should be done with the funds they have,
Not gambling on the stock market,
Just straight up go and buy the Land,
Subdivide it and Build Affordable Housing.
They should also sell existing Public Housing to Tenants,
For a slight increase of what they pay for their Rent.
Apparently their is a lot of empty Public Housing which should be made Available,
For Affordable Rental Prices,
And also rent Buy for a Bit more a week.
The other thing is they need to look at why people did pay 50% more to near double in many areas.
And if that should effect the perceived value of all Houses in a given Area,
As just because one person overpaid,
The whole suburb has not suddenly all changed hands for 50% plus more for example.
One possible explanation could be that some people moved from other states to QLD,
Due to the strict Covid rules in their state,
Which meant some could not even go to their relatives funeral,
And just wanted out,
Not really worried about how much it cost to do so.
Others could be that Real Estate agents made out the areas value was higher than it was,
And tactics such as vendor Bids are and were being used to push prices up 30%+
Another could be developers buying a few Houses for a High Price,
To inflate their Sell Prices.
Similar if someone or a group of people owned several Houses in an area,
Is it possible they would overpay,
To get a better sale price for the rest of their properties?
Same could go for landlords who own multiple properties,
Would they Overpay to get more rent on all of their properties?
Could people be getting in groups to do things such as this?
It is probably likely it does happen,
Just like the games played on the stock market.
Main point: get affordable Houses back to around 3.5x Average wage,
To give the newer generation the same chance other generations were given....
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