1
Blah-Blah Bar / Re: General Discussions
Last post by Thryleon -The current system is unsustainable.
Our kids cannot afford to buy a home.
The only solution is that existing property owners take a bath, we reset and move to a future where residential property is NOT the key wealth driver for the nation.
Sometimes it suks to be you but in the national interest and the futures of our children and grandchildren we are going to wear the pain.
Mr Gerkins take below:
https://www.facebook.com/100064574628678/posts/pfbid0MS8ubudkPAob2zFmQVjLRA6jiPTPuDCPLg6LYcxU6uDQtss9beCZSYSrdcoLEmopl/
The asset stores value and appreciates in line with inflation. This is true of housing and things like the stock market.
The amount of wealth that will be destroyed, and the economic damage it will do will hit unilaterally. House prices and values would also impact stock markets, will impact pensions, will impact taxes.
You cannot fix the house pricing issues which is not enough supply to meet demand, by changing economic conditions around taxes and pricing.
The real problem is that inflation underpins the stock market rise which also is where the majority of Australians have their superannuation tied to. Stock market tanks, super tanks, pensions tank. Then people need retirement support that comes from the government and brings in yet more challenges.
Those challenges are that my generation (millenial) isnt going to get a pension. We are going to have any retirement fuelled by superannuation which ive had since I was 14 and 9 months and started working. Between myself and my wife thats grown to a decently sizable number but it pales into insignificant compared to house values and costs of living and its growth is tied to the same inflationary pressures that are pushing the cost of everything up.
Any of our investments are also going to be adversely impacted and where we chose prudent financial strategies our peers not always did, and that is why we have two properties thats main store of value is capital growth, where our debt levels have barely moved over the 20 or so years we have been paying mortgages for.
I dont know what the answers are but there are apartments and units a plenty out there and people dont seem to want to buy them and myopia reigns supreme where people want to live where they grew up. I did too, but it was unaffordable for us so we moved 20 kilometres elsewhere.


