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17/08/22
15:04
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Originally posted by Bunn-Wackett:
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Now I get you lol It's what they've been exposed to over their lifetime and I don't find too much fault with the youth of today but many are going to be in for a rude shock when the rug is pulled out from under their feet, including a potential re-rate down on their house. The most amazing thing I've discovered is general ignorance on how extreme a positive effect can have on a mortgage putting extra on the repayments but the biggie is this: Buying a car on finance, say $30k's worth and changing it over every five years is costly. So costly in fact that if you could do without it you'd have enough money for an extra house or two (depending on the location). Take into account finance costs, depreciation (that's the big one!), opportunity costs, insurance----work it out over a lifetime of driving! There's middle ground though and if you desperately need that second car don't buy a 4WD on finance. Go and have a butchers at all the new estates and you'll see all these expensive brand new 'second cars' sitting in the gutter of a two way street that can only accommodate one car, no passing! The motor vehicle bubble will burst leaving many well and truly in debt they cannot cover, adding fuel an already overstretched economy. The entire property ponzi scheme, negative gearing, everything on credit, is based upon values rising and the house of cards is looking very shaky indeed.
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yeah its hard to take seriously some younger generations complaining about housing affordability when they have a brand new Toyota Hilux or Ford Ranger on finance, the partner has a close to new Mazda 3... I mean c'mon. Housing was certainly a lot cheaper for my parents generation but they had a beaten up nissan sunbird when they got their first mortgage....