The number of Australians falling behind on home loan repayments is growing | 7.30
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- Опубликовано: 29 июл 2019
- Despite the lowest home loan rates in decades, more than a million Australians are estimated to be in mortgage stress. And the number slipping behind on home loan repayments is growing. It's now at its highest since the end of the Global Financial Crisis.
Read more here: www.abc.net.au/news/2019-07-3...
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When me and my wife said its time for us to buy our home , the bank told us we can borrow
$800 thousand i was 48years old my wife was 51years old at the time.
I said to my wife no way i would ever take out a mortgage over
$ 350 thousand .
We found a house we both like for around ,$384 thousand and got a mortgage for $320 thousand and that was 9 and a half years ago .
We will have it paid of next year around October.
Yes its great to have that McDonald's mansion and the headache and the worries to go with it if you like.
But for us simple is better less stressful , always live below your means and have a less stressful life.
Stephen Johnson You are braver than me. I only paid $50,000 for my home and you could have told me about the strees, sooner! Now i want to just give it away. Lucky i never borrowed the money.
😍😍😍
@Fintan Magee There's other areas. There's Tassy
@Fintan Magee Why not?
@@castorchua Well, around 40 % of Tasmania's population live in the greater Hobart area which isn't cheap, either... only by NSW standards, maybe...
Wowel he only owed $250k and rather then selling and walking away with cash in the bank.. he borrowed $600k + more.. OMG. That is insane and 100% not something other people do.
The bank should never have loaned him that kind of money at his age. It's strange that they did.
@@Blackheathenly Isn't that called "reckless lending"?
Something is suss, they said 1 million debt. I reckon it went from 250k to 1million in prop value. And he’s sooking cause instead of being able to own a 1 million house he made bad financial decisions, no health insurance, renovations etc
Something else was dodgy there. They said on his last loan after he failed it the interest spiked to 60%. His last loan must have been some predatory short term loan- the bank probably refused to finance it. He must have shopped around for a dodgy small business lender or something who would.
Some people have unfortunate circumstances that lead to poverty. This man worked exceptionally hard to create them.
@Hieu TV I agree, I'm just saying something was off about it. Most banks don't pull moves like that
"Australians falling behind on home loan repayments". Here are some people with extenuating circumstances. You're missing the target ABC.
I think you’re right.
Francis Brooks they sure are
Naah, it’s just a big, complicated target....
Francis Brooks - the ABC needs to put a ”whoa is me” spin on it, in order to protect people from accountability.
Enlighten us Francis... what is the target?
The greatest scam of all time. Print money, give it to the banks to lend and reap the rewards.
I looked at the title, then ABC presented a old couple who were ill prepared for medical expenses/insurance at their age and a single mom that refuses to leave a house that she cannot afford.
All I could see from those two cases are financial mismanagement.
Your heartless
@@dcbeez5956 And you are just another idiot on the internet that puts your sympathy in the wrong places.
0.0 MYSTIC 0.0 Financial mismanagement thanks I learn a new word thanks to you :) u learn something new every day lol
0.0 MYSTIC 0.0 Agree 100%. Instead of paying for renovations and living it up how about taking out health insurance mate!
Even the first man admitted it was his fault. With the second woman, I would love to know the ex husband’s side of the story. With her lack of financial reality, is it really better for her kids to live that way? The main thing that stood out to me is her lack of any job skills.
"How good is Australia's ponzi housing bubble."
Thankfully we will have a housing led recovery....
Life is much more peaceful, without hundreds of thousands in debt hanging over your backs, you should try it
Infest in BTC 🤑🚀👍🤠
Are you volunteering to pay off my debt.
Move away from the city to the country and buy a house... simples! You’d be amazed at how easy it is to pay the mortgage on an average home in the country when it’s almost half what you pay in rent in the city
Yeah I didn't fancy still living at my parents house until I turned 50. I'll take the 300k debt & live in my own home thanks
Can you afford rent and daily expenses when you reached retirement age, has no income and has health issues?
Famous words once said "The things you own, eventually end up owning you" the saddest part about this whole story is that it couldn't be a more perfect example of this. Everyone needs a house though so its very tough.
own my home outright. never had a mortgage. Wife is Vietnamese and they dont like loans. work like crazy, save like crazy. buy everything with cash. the peace you have owning your own home without mortgage payments is pure heaven.
You are soooooooo right
I'm Vietnamese, but I prefer to have my own home with a loan instead of living at my mum's house until I'm 45-50 saving to buy a house out right
while this is good advice to most people, with sound financial planning you can actually make better use of your money if you take out a mortgage when interest rates are low, even if you have the cash.
@@mistletoe88 nope
I've been saying this for many years on forums but few would listen: our obsession with ever rising house prices is completely sick. The attitude of 'I'll mortgage myself up to the eyeballs, 40% of my income on minimum repayments, but no worries as the house increases in price by 10% every year!' has driven the entire country into a world of trouble.
Instead of investing in factories and technology we've piled our money into chasing ever higher house prices. The bill is coming due, and now even 3% mortgage rates will not save many from what's coming.
Mate, I dont know where you live... but where I live coffee shops are full, restaurants are full, and people have never had it so good..
@@MrFastFarmer Yes, they're living like it's 2007.
@@MrFastFarmer ahh ... yes .. before pandemic hit ... ahaha ...
@@MrFastFarmer Most farmers are literally born with free land and a business , what would you know about the average working person?
This also means that there is more than a million people who won't be spending any money at the shops. Then the staff get their hours cut and they cant pay their mortgages.
And it spirals down like a row of dominos. Our economy is a joke.
Okay, the first gentleman’s story, while tragic, is not really the best example of the broader issue; there are too many other common factors to do with mortgage stress. Then you jump to an economist talking about the real issues. Great. But then even the woman’s story, while also sad, is a-typical (i.e. a child with autism). Both these examples are, no disrespect, one small category of people affected. What about all the people who have borrowed outside their means-on 25-30 year loans? Going for the emotional angle is a wasted opportunity, no disrespect to the people in terrible situations-but really, they would probably be in the same situation regardless of the property market, so don’t really help as examples (the guy bought his place 20 years ago). Try again, ABC. Go for useful, factual analysis. Who is suffering from mortgage stress and why? These people, we would find, are but one category-stories worth telling, but not really examples of the scope of the problem.
My thoughts exactly mate. The ABC is always doing this.
Absolutely correct. Unless old people with severe illnesses and single mothers with multiple children (and one with autism) are the "typical" people with mortgage stress around Australia and are in fear of losing their home, they shouldn't be portrayed as a symbol of the problem facing the country.
It's a story meant to pull emotional heart strings rather than appeal to reason. It's something I expect from A Current Affair, not the ABC.
Low interest rates, equals big debts, equals enormous problems when circumstances go awry. These issues happen more often than not. And more often than people realize. When markets are liquid we don’t hear about these stories because people have options. This isn’t necessarily the case now.
Yeah. I watched this thinking the same. Having two stories so completely detached from a common reality made it look like there was an agenda they were desperate to get across. It made no sense at all. Poor show 730, I expect more from the ABC.
@@smudge6831 A man who tripled his mortgage to fund a failing business and a woman dealing with the financial impact of divorce. Sure, the market state limits their options but the story is about "more people falling behind on their home loans". Both cases covered happen regardless of the housing market state, the story is pretty fluffed.
There are a multitude of factors, outside of the unfortunate life issues show here (such as illness and family breakdowns) that are at the heart of the housing problem.
1. Badly designed and implemented tax policy - Capital Gains Tax Discounts on residential property - opened the flood gates to speculative investors. That led to serious over valuation of residential property assets.
2. Unchecked property investment from overseas buyers who are not interested in rental yields but just want to move asset classes from say foreign currency into a tangible asset. Also contributed to ballooning values.
3. State and local governments are incentivise through the Stamp Duty and development fees to continue to seek increased values so they can get a percentage of the value into their coffers.
4. Real wage growth has been virtual nil and for many Australian moved backwards due to rising costs of living.
5. The low cash rate from the RBA became structurally ingrained into the economy, so people do not have the means or appetite to absorb higher rates. For example, if you're Sydney median house price is $1,000,000 and loan is say $500,000. Then there is a huge difference in servicing a home loan at 4% than at say 7%.
6. We have a significant amount of low skilled labour immigration as well as temporary medium term residents entering the job market. Meaning the excess in labour is causing under employment or in cases under payment (e.g. 7-11).
7. Australians have changed their mindset about housing being seen as "home" to now "investments". So we as a society are ok for many to not have a "home" as long as we have our "investments".
8. The self-managed superfund has become a tax haven and asset transfer vehicle for many. Including what was the ability to leverage residential property in super. Which again moved housing into a more sought after investment class.
These issues have been known by both Liberal and Labour based governments, but they are far removed from the everyday Australian and they have little incentive to change given voter apathy and the general lack of financial and political literacy in Australia.
👆comment deserves a lot more votes!!
@@domvonhutch and significant inflow of cash from Asia too.
The nation will have some challenging questions to answer... It was interesting to hear Mike Pompeo and Marise Payne talk about the alliance.
The problem is usury!
those are not homes,those are like multy hundread thousand mansions,i really cant feel for those people they are rich,i live in a tiny house here in brazil,you must live to what you earn and are wealthy enough to buy,not fancy things
Many years ago I predicted the house price rise and then the subsequent ghost recession, at that time I remembered some sound advice my grandfather gave me and that was "There are only two ways to live comfortably in a consumer based economy 1.) Increase your income (cash flow) or 2.) Decrease your outgoings (Bills)" I chose number 2 (less stress), so I sold my house and my business cleared all my debts and travelled around Australia for over 3 years (best thing I have ever done) now I have only rent and utilities for bills, My lovely lady and I are able to live on just over $400 a week if need be and we don't have to worry about putting food on the table or falling behind in our bills, in fact we are actually in credit in all our utilities. Now my outlook on life is "Simple living is simply the best way to live."
Man I would like to do that too.
I am happy for u
Same reason the wife and I are preferring to buy plots in the third world instead of slaving our guts out for one "package" in Australia. Give one plot to some local kids in exchange for wiping our spinchters in retirement instead of dealing with the corporate age car sector. Planning takes more creativity than ever these days. Fark the system.
this process has been known to work for everybody when applied
What happens when your elderly and still have to pay rent ? So much has happened since this story. Rentals are harder to come by now and house prices have risen way more than predicted a few years ago.
I’m sorry but we all know what we can realistically afford, too many people chasing greed and not living within their means.
isn't the case usually "trying to live close to where you work?"
I'm sorry that you're sorry. Lets take interst payment & taxes out of the equasion.
Now we are all a lot wealthier. About double or even tripple the income in fact (taxes & interest take up around 50-60% of most workers incomes, even more for some people,in some years (50% income tax 10% GST 38% fuel tax etc).
But this couple are well trained & indoctrinated, they blame their failing health.
Hay Micheal, if government print & control the money, why do they need tax?
You re right, but banks are a main part of the problem, allowing such sums as mortgages
@@somerset3078 Where did the banks get these trillions of $ from?
I lived until May 2019 in Sydney for the last 55 years....Then I sold my tiny home in Sydney and just bought a 3 bedroom & 2 lounge room home fully paid for $155,000 in Narrandera! The people are amazzzing, excepting and very happy to see folk come here to live. It has a Coles supermarket, and many other shops. I wish I had made this move YEARS AGO!
mossie nice but how do u work? No economy there
Han Bulban Retired I guess
@@kotare86 My son who is 27 came with me, and he is doing ok....If a man wants a job....he will find one! Its that simple.
mossie if it has a Coles it must be good! Lol
We are continuing living in an age of zero pay increases. Meanwhile we continue to pay more for everything. Health care, electricity, and gas has risen more than 100% in the last 15 years. The price has also steadily increased in the property market to rediculous prices. Our pay has not been keeping up in proportion to all increases. Most people are just now working poor, and the very rich & influential like to keep it that way. No sympathy found there. Who says Australia has no Oligarchs?
You know through shell companies the chinese own our power.
zero pay increases coupled with private debt still growing at 20 billion a month = trouble.
There high taxes on everything we buy that social democracy
Your businesses will make you rich but your investments will make you wealthy. We all deserve to be rich and have financial freedom. I pray everyone here becomes extremely successful.
You're right, the importance of multiple streams of income, unfortunately having a job doesn't mean financial freedom or security.
Speaking of been successful. I know I'm blessed if not I wouldn't have met someone spectacular as Anna s Wilson.
I have been surviving through my investment with her, I'm so glad I invested when I did, I'm earning $25,000 weekly with her.
Investment is a tiny line that separates the rich from the poor
Same here it's been four months now I started trading with her, and it's been a good experience.
Who else watches Martin North? This is old, old news to him
Not many it seems
Martin who??? A mate of yours Holly?
search button, try it @@brettgrady1921
Walk The World channel
And to Steve Keen, it's way older. Predicted this since 2011.
Have never been in debt and when I retire, I want to be a grey nomad and travel. Debt free living on a small income and being comfortably happy.
nice concept, but you have to have an income or savings today or both to do this. Most of all either way you have to have an address. Many are not in a position of good health neither and need access to hospitals etc. Sounds like though you can, 🙏🙏😄
Not me! I'm so glad that I relocated from California to buy my 36 acres in a national forest in my early 40s. I was soon after diagnosed with MS. That was 15 years ago and right now I'd be homeless had I stayed in California. Eliza, you are delusional if you think that sudden illness and/or disability can't happen to you. Or, perhaps, being disabled and living on the streets is your idea of a "nomadic" lifestyle.
I am doing that now!
It is a great life! I would never go back to owning a home or all the responsibilities that go with living an old dream that is no longer feasible. The other thing I realized is I do not need much at all to live happy. I only use about 1/3 of my pension, I have lost weight, I am healthier and definitely a lot happier.
High on emotion and low on data ... just right for the Aussie public.
Illness, unemployment and divorce : common reasons for mortgage default. All this when borrowers enjoy the lowest interest rates in history. Something is incongruous about being a mortgagor living in a luxury house and yet reliant on food charity.
People in Australia need to stop buying above their means and also stop having kids you can’t afford.
Housing prices are 10x too high in Australia. Housing should be owner-occupied only.
valcarni1 typical comment from a renter.
Debt. Same old debt...everyone is addicted to it and think they can somehow make it with endless debt. Most people nowadays are debt junkies...
rickie G and the banks are the dirty dealers... wanna hit
Do your numbers and plan for worst case circumstances..
Learn to live on a budget
Stop thinking you deserve stuff
People here are blaming whoever they can, 200K was his orginal loan. And thinks he can cover his loan with a pension. Lmao 20 years and didnt pay. If You cannot save why expect a house for free. Its not hard to save. Wages are higher then ever and its easier then ever go get rich
Clearly you missed the point.
Maybe, regarding the perticular guy in the video is not a good example of that.
Ppl DO DESERVE STUFF.. REMEMBER THE JUSTIFICATION FOR INCOME TAX, SALES TAX, INHERITANCE TAX, FUNDED BY TAX INSTITUTIONS!! ANYTHING GOVERMENT TAKES AS IF IT DESERVES YOUR STUFF!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
@@burths7984 - that guy's story blows my mind. He could have paid off that initial mortgage already and been living a reasonably comfortable life on the pension right now - except he refinanced and ate up his equity by borrowing another $400,000 and then he did it again for a total of 1 million. How can I have sympathy for a fool like that?
Here I am, stuck on the dole for 10 years now, and will have cleared my own mortgage by this time next year. I do also work casual farm jobs (and declare every cent to centrelink), and I do also have 3 autistic kids. People need to live within their means, and think about the big picture. The age pension rates are designed with home ownership in mind, a pensioner living in their own home that is owned outright can live a reasonably comfortable life. That is the big picture right there.
@@lunsmann exactly right. within your means. low income well you'll have to settle for a more rural or fringe area. the example in the video the woman staying and paying for her kids. well tough luck you'll have to leave the area in order to have a secure future financially instead of socially.
"a little bit of paradise "
Actually a little bit of paradigm of inaffordability
Why did he borrowed more money when he was already in a lot of debt
Wong Wing Sang cos he little bit cookoo
This is the first steppingstone before the housing market collapses.
Stagnant wages, over inflated prices and irresponsible lending.
The Australian bubble is about to burst.
@No Name Is it a ponzi scheme... of course, but It's too big to fail and I couldn't agree more - it wont!
Spot on
lol
some people are waiting patiently to cash in, when prices fall, that's the time to buy. I am freehold but if I had my time again I would not buy when prices are rising. Forget the dream home on first home purchase. i'd buy something that i can repair and add value. Keep for 7 years then sell.
John when will be the right time to buy ? they say prices have fallen but where I am houses still seem to be selling very quickly . People are offering close to the asking price , with conditions they get finance or sell their existing home etc and it is still working out . Every time I go on to real estate dot com . Houses I have been looking at are under offer . What is really going on ?
@TyRCelto Yes I think you may be right . We have looked at many houses in Queensland . price range up to 600k . I would love to live the rural lifestyle in Tasmania, but the wife would not be in it . Also I imagine in Hobart you could get a really really nice house for 600 k . The rural lifestyle here in Queensland is ruined at times through no rain coming when needed . and or isolation . Great to have rolling hills nice and lush green and it actually rains . Instead of brown everywhere .And summers can be a killer .cheers.
I'm betting on the house prices falling in the next few years.
The moral to the story is stop living above your means
EXACTLY....I downsized, debt free, save,......peace of mind...GOD SAYS.... IN THE BIBLE TO NOT BE A SLAVE TO THE LENDER.... COUNT THE COST.... PUT MONEY SAVE FOR EMERGENCIES....BE CONTENT WITH YOUR BLESSINGS, LIVE BELOW OR WITHIN YOUR MEANS....MAY GOD BLESS A ND HRLP ALL! PLEASE DOWNSIZE!
Moral of the story is dont live in Australia 😂
And the same to those people who take out car loans at the exorbitant rates and ‘show off’ their recently purchased high-end SUV.
"Allah will deprive usury of all blessing, but will give increase for deeds of charity" (Quran 2: 276).
Narrated Jabir ibn Abdullah: Allah's Messenger cursed the accepter of interest and its payer, and one who records it, and the two witnesses; and he said: They are all equal (Muslim).
Angela Lewis Sounds like somebody follows Dave Ramsey 😛
waiting for interest rates on savings to be -5% but credit cards remaining over at least 13%. that's fair innit
Well just use your savings instead of a credit card. No brainer.
The thing is when you are pushing middle age bracket and trying to get back up Ageism and Centrelink really drags you down.
Ageism saps your self confidence while Centrelink take away your dignity.
Yes people can be so very intensive at times.
lower land prices stop the greed.
@TyRCelto That's the definition of greed. Why do you feel attacked for being called out. It's like racists who don't like to be called racist.
@@maythesciencebewithyou Your comment makes as much sense as expecting people to work for free.
Shel L nice eye
I'm a lawyer in Canada and over the last year and a half I've seen the cracks:
1. People coming to me to sign off their rrsp, savings and pensions for emergency uses.
2. People coming to me to sign off on insurance claims on various purchases or claiming loss cheques or making claims against employers or against ex spouses for child support payment to increase or decrease obligation.
3. People seeking legal advice on general loan agreements from family and friends.
4. People seeking advice about consumer proposals and bankruptcy after they couldn't manage credit cards juggling.
5. People asking me about second or third mortgages questions and independent legal advice.
6. People asking me advice about separation and divorces and selling their homes.
7. Family members seeking my advice and services to help with estate matters involving mental breakdown or attempted and successful suicides.
It's the frequency of these legal works compared to other years that's alarming.
Finally, your news station is picking up on this financial strain that many people are experiencing.
@No Name Different countries sharing the same pain. I'm based in Toronto and if you Google, our home prices are crazy high like yours. Let's hope your country will not be following the trend that a lot of my clients are suffering here in Canada. Based on this report, I'm afraid you may be heading in the same path of human suffering.
@No Name the debts and economic crisis got nothing to do with politics or related to this reporting. But your comparison or understanding of socialism is totally off about Canada. Not in any educational context is Canada considered a socialist country, not even close. Try again.
@@VT-zz3ik Oh well you can still make money off of this suffering least someone intelligent wins. A fool and their money are soon parted. Stuff em. Not your problem.
I'm not one to relish on people's miseries, even though, I see how someone like you will hold these people accountable for their choice to lead an extravagant lifestyle. The truth is that in many cases actual money never came to play, rather it's the credits or the loans that banks have been giving out like candies that get these people into trouble.
Vinh Tran I am in Toronto as well and I am not surprised at the amount of inquiries you are getting in regards to debit. Insolvencies on the rise and bankruptcies surging in Canada.
What really here is what is next. Interest rates at dead low levels and people still can’t afford to keep things afloat. My idea here is that anyone in this spot should seriously claiming the bankruptcy and get it over. Better to take the sharp intense pain then death by a million paper cuts. Very interesting to see play out for sure.
Please do a documentary on how many properties the politicians has under negative gearing
Or better still a dodo on the property portfolios of the board of the Reserve Bank
I meant Doco
Peter Emmett I wanna see this dodo
Million dollar mortgage I wonder why you can’t pay it back lol
Not buying what you can't afford, saving and investing has been my escape plan, bought my house all paid off at once.
well said, don't buy what you can't afford.
the most important is to invest and live a debt free life
What do you invest sorry if am being too inquisitive
looking up on some investment options as well
I make vast investments, forex and stock has contributed hugely to my finances. Made over $800k forex last year which is an amazing to me
i struggle to make good trades trading forex please how are you able to make such amount am very interested
Sydney, Auckland, Vancouver, San Francisco, London: it's the same story everywhere. People will look back at today and remember when people only "struggled". Much worse is about to happen.
I hope not and I don't think it will be the case for everyone, but probably most certainly for a majority so sadly. 🙏🙏🙏🇦🇺
..let me add : Kuala Lumpur... Johor Bahru .. Penang ... big big city in Malaysia
same problem ...
Accountants always say "make sure you save 8 months worth of spending money to live comfortably and pay bills in case you can't work." I wonder how many people do save money?
@ i have ielts exam can you help me in speaking practice , if u do this i really thankful to you ,if its okay i will give my Instagram id , am from India
Samantha Peters I wonder how many people make enough money in the first place to be able to pay to live now let alone save the 8 months, great idea in theory, not realistic for most
I would put that number at “maybe” 25%. Most people are morons when it comes to money! Delayed gratification is a foreign concept to most people.
"rental prices are higher than the mortgage"
You forgot to add interest?
I'm going into debt over power bills - thanks greenies. And rates, utilities, petrol and food keep going up here in a huge way.
No one should be living in their "dream home" unless they are as rich as a celebrity.
Kara A or pay of an affordable house in 10years and repeat, then after 30year you got your dream house. But only if you are willing to work hard and wait till you can afford
"dream home"? Most of these homes are shit and falling apart, and still sell for over a million. You expect people to live in a cardbox?
That house is a wreck. Good luck bank...
The Chinese buys the properties in Australia and caused the native Australians to pay a premium price for their houses. So that is why many aussies could not cough out the money
That's why illness and disability insurance is so important.
Smart ✅
Apart from a roof over your head NEVER EVER and I mean EVER go within cooee of the banksters.!!
Negative net worth has been building since the 1980s with growing inflation and stagnant wage growth, its accelerated since 2007 exacerbated by low interest rates to supplement low wage growth, in developed countries like the USA it makes up 40 percent of the population albeit growth does occur but highly concentrated.
How do you get 3-4 years behind on the rates???? I had the bank on my bank when it was a few months (NZ). They didn't waste time sending in the valuer. It was probably the worst experience of my life. Luckily, I was able to borrow from my retirement savings to bale myself and I really learned a lesson the hard way. i now put money into an account each week for the outgoings. Never again.
It is now June 2022. Interest rates has gone up to .75. Arrears are predicted to go up. In Sydney, arrears is rough 1.1%
We need an increase in interest rates to clear out all these bad loans.
Live within your means! “”Dream home” No such thing!
The problem is that people doesn’t know the “ real property value “. of their home. Until people realize that your money doesn’t mean safety and security.. When you take loans make sure that you understand the loan repayments.
Do yourself a favour, look at Ireland's mortgage arrears. 2005 - 2008: 1.X%, end of 2009: 2%, 2012: 15%+. Arrears will not move as they expect it to. This is what awaits us, not long to go now.
This is what happened in the US in 2008. Watch 'The big short'
Look at any index and 2008 is hardly a deviation in the stock market....
@@MrFastFarmer Well that makes sense since the sub-prime crisis had nothing to do with the stock market.
@@MrFastFarmer if youre talking about the sydney index price, you guys were insulated from the 2008 recession because commodities prices went up and the mining sector boomed. You guys barely had a recession.
@@MrFastFarmer china's economy was responsible for 50% of global gdp growth from 2008-2018. Australia's proximity helped its economy
These two examples are not indicative of the market overall. The apartment market is where that action is and over leveraged interest only speculator/negative gearers, although the banks are being allowed to do some under the counter deals on that front to stop a major collapse, ie, pretending to switch customers from IO to P&I but its just a show for now.
This happened here in the US in 2007. It doesn't end well, have fun with that...
@@Erwin_Auerbach It is and will. Why do you think politicians like ScoMo are allowing for 5% deposits for first-home-buyers? To trap them and keep the bubble inflating.
don't let Australia become a corporate country
Google creeps me out 2008 was nothing and America has boomed since.
@@MrFastFarmer its boomed now. It sucked ass ten years ago when everyone in my town lost their jobs, homes and used their spare time to get addicted to heroin.
@@MrFastFarmer no
Buy Gold, Silver, Bitcoin and Litecoin to financially survive what is to come.
yeah sure bro
I've gone out and bought a load of Ripple and Cardano.
@@Fluid36 and lead
At 20 cents per hour increase in wages I can't see why..,....?
Maybe the reduction in penalty rates, cost of living, electricity, water, tolls, rego, healthcare, prescriptions etc play a part.....?
Barnaby is the only politician complaining he's struggling in hundreds of thousands in wages ?
How dare Newstart recipients complain about $40 per day.
Maybe we can do a Newstart crowd funding site to help out Barnaby... poor guy, the best retail politician in Australia.
@@gore1089
We're too late, the liberal government has already started with robodebt to help finance politicians in need, that will be all of them poor buggers.
Bronwyn bishop and Susan Leah can't even afford to travel without taxpayers help.
Scott Morrison even replaced Monica Lewinsky under the oval Office desk to seek more money.
@@luciferblack3105
Centrelinks new automated self motivating and monitoring system is also reaping benifits, millions are being caught not applying for jobs and benefits are being cancelled. Too bad if you can't afford data or loose your phone.
@@gore1089
Without it you can't apply for jobs....?
There's much easier ways to control those who take advantage, the card itself is proving successful and outstanding that " one " politician earnt their paycheck thinking of it.
Imagine a Centrelink training program that educated the unemployed youth of today the benifits of a politician........?
Hundreds of thousands in wages
Travel
Living away from home allowances
Wifi
Vehicles
Taxi allowance
Clothing, suits, etc
A/C offices
Taxpayer funded cafeteria
Taxpayer funded meals
Airfares
Pension
Insider information
Etc
Etc
You can even deny having dual citizenship
Use taxpayers money to fly too and fro to purchase investment properties and then get promoted into the front bench with a pay rise.
If there was such a program, every single unemployed youth in Australia would be studying to be a politician.
@@luciferblack3105
I'm sure they spend many a long night working out the best possible benefits and allowance perks for themselves ... and guess who passes the bills into law?
They do..!
as Scomo said,! labour is playing empathy politics with Newstart... that's it...
the end of it.!
That's the attention the rest of us get.
Just loan what you can afford, problems solved.
maybe you could of profiled your average australian. not 2 special cases
Sell your houses. Nothing wrong with renting. When IO loans reset these figures will get worse. Ticking time bomb.
Unfortunately the IO reset has been kicked down the road. New assessment rate means max borrowing capacity is now more than pre BRC. Debt bomb to the moon here we come.... !
Why didn't he downsize instead? And rent out the rest? It works for me
that makes to much common sense
What the Hell were these people thinking borrowing too much money.
I was told by the tooth fairy, if you don't have the cash... Go without!
It's Madness.
Just have to rent out your rooms in the house
One of my friends (a student) is renting a room in an old man's home. The old man doesn't feel lonely anymore.
One day my friend found the old man on the floor. Apparently the old man had been like that for four hours. My friend pays low rent, because the old man is on a pension. But they both benefit from living with each other.
I do wonder how much money people can earn from renting out spare rooms? Also do they have to pay tax?
Samantha Peters That’s something Australia can have a try. In Finland they let aged care residents share house/apartment with newly graduates, it seems working well.
@@samanthapeters8314 that certainly is a God send of an amicable arrangement. Me personally, struggle with living with other people, often they are not clean and couldn't care about house maintenance. I rented my home and lived in my bungalow at the back. I had to do everything still. Two lots of people rented it via the real estate, both trashed my home, stole the dishwasher, took off doors, their animals dug holes making a huge mess of my beautiful garden that I spent months and late nights working on it. It was a nightmare and I was no better off. I eventually sold at a nice profit, but was unable to buy back I into the market, I'm not sure still if I would want to, particularly now the way thing's are and I am also older.
Impossible, everyone told me you only make profits on properties!
This makes me so sad 😞
What is everyone saying? He gets a free house, why do a loan when you are not able to be full time employed.
Blame who you want but were the idiots still buying houses. You could rent a $1M house for about 200K for the rest of your life. Just save and be smart
Hardly and not every is financially savvy particularly when there is overwhelming life threatening sickness to also have to suffer. I think your comment maybe quite a tad,🤔 incentive.
"I have a feeling, in a few years people are going to be doing what they always do when the economy tanks. They will be blaming immigrants and poor people." -- The Big Short (2015)
Bingo. To an extent it's already being done.
0:43 Wait, what about Medicare? Why do they have such high health debts?
If we don't get Labor in now this country is going to collapse I'm dead serious. Scott Morrison will collapse this and has no clue what's even going on. Only labor know how to get out of a recession without sinking us in debt. I'm dead serious I've studied economies I'm 31 and haven't bought a house because I could see this coming. The longer the selfish people wait too worried about their cranking credits ECT the worse it gets. Greeds over it's time to clean up and make a real economy. Let's end the reserve banks and let the government issue the money :) Or watch the banks, stocks, housing, businesses collapse because there's not enough credit left to sustain this anymore. Please people wake up while there's time to fix it!
@@hutton40599 are you talking about the ones people already have or the ones the government's trying to get people into now to keep this going?
It’s a real worry
the 2 rd lady dont have cetnerlink?
It's only gets worse. Hold on folks!
Over capitalism.
variable interest rates are fraught with danger for borrowers. TOTALLY outside of the borrowers control for the entirety of the loan. A ludicrous gamble at anything over 5 years imo.
Just a repeat of the housing crisis in US 10 years back. It's playing out exactly like that. If someone wants to know what lies ahead, just study what happened there.
Sell the house and rent. Its not worth owning anymore
As my Mother used to say, put money away for a rainy day (resession)......
the thing that all these folks have in common is that they don't know how to live within their means.
And they do not know when to accept they are on a sinking ship and have to cut their loses.
So why do thriving council's charge massive interest rates on council rates that are behind.
Cash rate is low but thriving council's and credit card companies are killing folk with stupid interest rates.
I hope people are aware that the word Mortgage comes from the French term Mort gage which means “death contract”.
Fact
TFW it takes longer to repay a mortgage than building a house yourself from scratch.
If a person buys a house in Australia never finish pay it even if make payment in full!...
Council rates...use to be $100 a quarter now is $4,000...plus maybe charged land tax..?
Any house prices $450,000 Will cost 1 milion plus
After pay the house you pay insurance to house and contents
How much? Then service maintenance
Now if you pay for 30 years morgage + council rates+ insurance 1 milion plus
Very naive to be thinking that if i cant afford repayments on $250k so why not borrow $650k.... he should’ve thought about other methods such as renting the home out and living in a small cheaper place. Or like others renting 3-4 rooms, why would a couple with no kids need 4 bedrooms?. He obviously bought a place that was out of his league.
Hope is well for everyone
There’s no such thing as good debt
No debt will give the real freedom
debt is what creates new money. No debt no money. You wouldn't make money if there wasn't someone else going into debt.
but but you told us that the LNP are the best economic managers....You had the chance to help people ABC but you failed miserably...
Because upsetting Liberals is worst than being objective.
Well said Marc...its sad but very true...
Good call. I’ve pretty much stopped watching and reading anything from the ABC. Their ‘political’ and ‘economy’ commentators have dubious credibility. And, what happened to Emma Albericci!? She seems to have disappeared after the Coal brought her to task pre election!!
@Adam Bowen Wow clearly you haven't been following politics recently.
@@bluehorseshoe6599 Yea i'm the same..i cant bring my self to watch any so called Journo on any TV, All they do is write fiction
No mention of the added cost of interest that is not only compounding prices skywards, but makes the overall sum of falsified debt mathematically impossible to pay down, but then again what would one expect coming from usury media.
you see, when a corporate finance takes over
People have been sold a pile of lies. Interest rates may be historical low these past decade or so, but low interest rates do not mean anything if you have to mortgage $500,000 or more. Interest rates for mortgages were sky high in the 1970's and 1980's BUT back then housing prices were more reasonable/realistic. Low interest rates hide the TRUTH, blurs the reality if a mortgage truly is "affordable".
Main stream media playing catching up
DFA s Martin North and John Adams has been all over this for a year or two
What a pity the people of Australia have sleep walked right into unaffordable loans made possible by loose lending low rates and FOMO
Moral of story, dont be greedy, always buy what u can afford.
Well if you live in Sydney, Melbourne or Brisbane then there's not much you can afford. 😂😂
I feel so sorry for Les and Barabara. These are not greedy investors just average Australians trying to have a modest lifestyle. The system is failing when people like this are doing it so tough.
Karl Giese not greedy just as dumb as shit
People buy a house for $650,000 but forget the interest is around $400,000 + city council's rates going up from $100 in 1984...now $4,000 A year is $$120,000+ bills a person needs
3 million and a couple working don't get that money unless they eat soup everyday not go anywhere and don't ave a car + you got to have insurance....
When are these people now?
Some people make me feel bad for deciding to go and live in a car. It’s been a year now, no problems, bills all up to date and even some discretionary money for the odd thing.
That lady was wearing an apple watch hahaha. She's loaded
6.17
Ridiculous isn't it!! Taking food hampers from the church, and sitting with Christian's against poverty....with an Apple watch on your wrist! People have no idea of what struggling is. Or, they have no shame.
@@mp13r17 Yep, it's the same here in NZ. They have money on smokes and alcohol but they can't provide food for their kids. We have a few animals like that here on the dole.
Geoffrey Leonard buddy once she hits 2,000 steps she stops working and starts sobbing to anyone who will listen.
Don’t be pressured to buy until you’re comfortable enough to make repayments while still having a life!
I don’t own a home but I have zero debt and plenty of savings. I’m so much more comfortable than people who buy on interest only loans, have no equity while racking up more debts on personal loans and credit cards.
theres only a few of us left in this crazy society that save hard and wait patiently
@adiintel1 Owning a house is overrated. A lot of people buy just to show everyone that they have one.
@@kikiKaysie yes theres alot of jones out there 1 of my friends has 2 house brand new hilux 2 dirt bike latest phone and laptop he earns only 66k a year
while i make 150k a year he lives a very flashy lifestyle while i keep mine simple whats going to happen in 10-15 years if intrest rates hit 10-15% im sure most people will be screwed
@adiintel1 Good on you for keeping it simple and saving for a future. Your friend is nuts! I earn a little bit more than him too but I also keep it simple. I knew a couple who bought a house on interest only with no equity in it, personal loan for a brand new car plus two motor bikes, racked up credit card debts by spending lavishly on music concerts and operas. But they insisted they were “capable” of making repayments! Clearly logic was not their strength! “Capable” to me means I can make the repayments without needing to rack up more debts and still have enough to live on and enjoy life.
It’s like saying they‘re sticking to a strictly low calorie diet while at the same time they’re bingeing on Donut King and McDonald’s. Makes no sense :)
@@kikiKaysie quite frankly people in Aus have gotten on this greed train living beyond there means.
Misleading advertising:
Title should be “Select people that are facing bankruptcy with property depth”
The problem with Australia is house price keep going sky rocketing. Ppl that can afford to buy are only those who’d have steady income. Marketing analyst state wide does not look at the big picture . That normal ppl with average income can’t afford to paid. Even renting is sky rocketing in price yet compare to income earning for the last 15yrs for those who’s working we don’t earn that much. Everything around us is cost arm and legs compare to what we take home from work. If everything is so expensive people would eventually stop carring and stop buying.
Australians tend to make everything BIG, including big houses. That's why it cost them a lot. Should they choose to make smaller houses just enough for small family, they would have been free of mortgages in 5 years time.
There is lots of small homes. But they are same price as big homes.
It's the location of homes that decide the price.
I once saw a single story small burnt home with no roof, and small courtyard. It sold for over a million dollars, because it's in a good location.
Trie Haryanto so have you seen what mansions built in Florida cost mate? It's not the cost of materials it's the cost of lazy, labourers in Australia that make housing cost a fortune. The mansions I'm talking about don't exist under the $10 million bracket in Sydney and Melbourne.