How Australia became the world record holder for debt | 7.30
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- Опубликовано: 18 ноя 2019
- The second part of 7.30's economy series is about debt and how Australia's become the world record holder.
Individually most of us owe a lot of money compared to what we earn, whether it's stacked up on our credit cards or in our mortgages or other loans.
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A wise person once said,
"Taking financial advice from a bank is like taking medical advice from a drug dealer"
Definancialize the economy. The banks are so obviously complacent, decadent, manipulative cesspools, parasitic, barely functional, suckling on low interest rates.
hhahhahhhahahha 1000% right
who
Well at least a drug dealer gives you drugs 😂😂
🤣 better get a better Bank then. My "bank" has given me good advice.
Give a man a gun he can rob a bank, give a man a bank he can rob the world.
@@erichong7534 a fool thinks his a wise man, a wise man knows if his a fool.
Give many men guns and they can rob all the banks 😎
Mr. Robot :)
@Newromantic999 , You are the ancestors of convicts!!!
@@judymckee5992 No, our ancestors might have been convicts, but we're not the convicts' of our ancestors.
This is what I tell my family over and over again. THE BANK IS NOT YOUR FRIEND. They're goal is to make money from you, not help you. Cheers!
Government more like not your freind
@@coopsnz1 Bankers own the government. Cheers.
@@sinamos3945 hahaha no the Government regulates and taxes more, why business and public borrow more money from bank. We borrow money to buy new stock , pay wages, buy material.... the Government the biggest crooks to you not saving and paying higher costs to live . Btw you buy& work for a franchise owner not a Corporaton... another lie politican lie about
Every business do the same. Make money. Amazon with lowest paying corporate employees, made billions for Pezzos . Go figure
@@babytho.4006 13% - 51% tax on cars in Australia straight to Government Arsehole not franchise owner
Spending loads on a house,, yet you probably spend more time out of the house trying to pay for it than enjoying it....crazy!
Yep, just like the guys I used to work with 12 hrs a day 6 days a week earning good money yeah because that's all they did was work.
But they would talk about their new boat with all the gadgets and fancy ute to tow it, and I always thought "and when do you actually use this fancy boat, you're at work every waking hour?"
They'll "wake up" one day and realise they worked their life away and didn't LIVE it
@@crazyprayingmantis5596 yes I know a few too!
Tell them ,these idiots won't listen to me
Wow just to live up with Jones..just crazy one slight misjudgment and it’s all over!
Whenever i try to buy something expensive, i always wait for a week, and then thinking again whether i should buy it or not. This kind of method save me from wasting money on so called "sale/discount/promo" shit.
“I wouldn’t consider us to be well-off, I’d say we’re comfortable.” Oh okay mate, with your million dollar mortgage, kids in private schools and Mercedes SUV in the driveway.
Yeh but it's all debt. They stop working and they have nothing
Yeah "mortgage" as in borrowing.. or death in other words 😂 Not one bit of sympathy for people like this.. will be good to see these people fall, so all can afford to live.
I'd much rather have my little house that's paid off without the worry of something going wrong.
By comfortable, he means they can make their monthly payments on all their debts. Why do you think she never took a day off work after having kids?
What idiots.. people living a lie..
Just the thought of being 1 million in debt, gives me anxiety. I bought my own home at 25. We live in a rural city, bought an older, 3 bedroom, 1 bathroom house in a nice neighborhood and are working towards being mortgage free before 40. We may not LOOK well off, but I guarantee we have more money in the bank, less debt and a higher net worth than the people in my town living in a brand new, 5 bed house and driving a range rover. We are not stressed about paying bills because we live well below our means (we actually pay double our mortgage repayments every week) We simply do not buy things we can not afford to pay cash for, and definitely do not live our lives to try to impress anyone else.
This is the best, let compound interest work its wonder, get the mortgage known as mortal engagement, its design to keep one in debt forever! And glad your tip is the best, no point to try to buy the car, the brand name goods to show others, debt free is peace, and peace is so valuable most don't know. I am debt free now and I follow you 1000%, was once a borrower of loan shark. Glad out of the dark world. Thanks for great comment !! Hope more will follow :)
You don’t own a home when the bank has a mortgage on you. That needs to be understood. You “own” your home when you have the title clear and free and don’t owe a penny to anyone for the house.
See who really owns the home when you default on that property tax.
@@chrissund4889 Exactly! My worry isn't the mortgage, its the property taxes.
@@chrissund4889 what are property taxes? We don’t have them in Melbourne....we have Council Rates, is that what you mean?
@@leannewith3 Call it what you like, it's a government tax on house owners.
@@christopherfleming7505 hmm not that high in Australia so don't compare us to America
Love the way she has a big smile on her face whilst saying " we have a million dollar mortgage " living the dream !!!!! 🤦♂️
"We're tied to this mortgage for the rest of our working lives" *forced smile*
yes but their colleagues and friends will be impressed!!..propoganda.. they contrast the hard working family unit 'debt slaves" with the single mother "renter". she seemed far more pleasant a person.
She's crying on the inside. I wouldn't be smiling if I have that kind of mortgage...
The worst i saw was this family in the UK that had a 100% mortgage on some mansion- so they were renting from the bank. ANd they were going on nice skiing holidays and sending their kids to private schools and buying them nice things. Then they got all upset when the downturn came, the dad's business closed and the bank foreclosed. Well duh.
@@MsJubjubbird Yes but Strayans are even dumber and greedier. (on a mass scale). I just watched an ABC you tube video profiling a Strayan late 50's couple who are 'retired'. They have a property portfolio of Interest only investment property they don't own but cream the the difference bw the rent and interest. They were complaining and rather furious their lovely life (they did not work for) was under threat bc some of their interest only loans were converting to principle and interest. Despite my taxes paying for their negative gearing too and them doing bugger all. They had the audacity to say the govt should stop the banks from changing their loans. welcome to Straya 2019!!
0:29 “We wanted to have our... own home.” Newsflash, it’s not yours.
Exactly, why does no one get this. If you have money owed on it you don't own it.
The bank can take it from you any day they like for any reason. I wonder if anyone actually reads their mortgage agreement.
@@falakoala4579 not sure if there is alloidal title in Australia..but that is one way to own land free and clear
It's in the banks asset column and your liability column
I suspect the home is more theirs than the banks. If the house is worth +$2m which is likely, then they are in a reasonable equity position. From an affordability perspective there’s no problem either as their combined income is probably +$400k so a $1m loan would only be
@@MMG008 probably better to drop that down to $200,000.
Canada is the same. Everyone lives above their means. Brand new houses in suburbs with two new SUV's in the driveway. Not for me.
I would, if I can manage debt. It's dangerous only if you don't know what you are doing.
@@lisajason111 You only need interest rates to rise or a illness to scupper your plans if your living the high life.
@@crisfiler6128 do you know when interest rates will rise? I have been waiting for 20 years and Japan hasn't.
Similar situation in Stockholm / Sweden
@@lisajason111 In the UK they went up to 13% when I had my first house, crippled so many people so I stay cautious regarding lending.
There is something morally wrong with society when a house is so expensive.
It's just a house! It's not a bridge or a dam.
MartyvH its the interest rates. When central banks lower interest rate by buying bonds, those who sold those bonds try to find better yield and safe capital, housing is one of it. History has shown this many time, at one time, yield on house asset is going to be nil to the extent capital losses start to show, people starts selling, unemployment increase, things exacerbats. Usually when this happens, central banks lower rates, but at 0.75 rate, it is game over
Basic things like having a roof over your head is expensive lol. What a first world country this is.
it depends where the house is located. You can purchase a beautiful one...in Russia ...5 times less price
But nice house and family is the dream of many people
You are so damn right!
Me 3 weeks ago: you know what? Australia doesn't get enough credit for being a damn fine country. Might move there someday.
RUclips algo: *I'm gonna end this man's daydreaming*
😂😂😂
Just don't live in Sydney
@@Coolsomeone234 what about Melbourne??
@@mkzai idj
@@Coolsomeone234 Wdym?
I remember my mortgage being $200.000 back in 2003 ,and use to shit myself worrying about it. Eventually became free hold and will never borrow money again for the rest of my life.I think having no debt will increase my life span due to no stress.
The boomers had 80k mortgages in the 80s.
The big issue is that real wages (the average wage in regards to an individual dollar's worth over the years) are effectively decreasing. When put in regards to the cost of living and inflation, the average Australian will earn less next year than he did this year.
The debt cannot be paid
Brett Wilkinson same here but I guess I’m a decade younger than you. Got the house I love almost payed off. Won’t have to pay mortgage or rent ever again after that
@@TheTeremaster one has to realize this , but paying rent is like flushing money down the toilet. One has to make great sacrifices to achieve being a house owner now .No kids , no holidays overseas, No eating out in restaurants. Do exactly what our grandparents did and you can achieve your goal. Owning your own house is still one of the big highs in life.
It's the ratio of salary/mortgage that needs to stay put. Unfortunately the salaries are stuck in the 70-80s in real value, while value of homes has gone through the roof.
@@TheTeremaster Your analysis is spot on but not ALL wages have stagnated. The largest companies are richer than ever with spare cash to buy back shares. Who owns those shares? The 1%.
Is it surprising that all the profits generated by capitalism are ending up in the pockets of the capitalists? Trickle down economics is a myth.
If you choose to buy a $1M house and you only consider yourself 'comfortable' then perhaps you're not living within your means.
MrAnperm If you can’t borrow half a million dollars your living on the streets and if you can’t borrow one million you will spend an two hours in traffic every day. My advice, rent rent rent.
@@simoncarter5951 For anyone living in Sydney or Melbourne this is so true!
And for people living outside of Australia and unaware: the AVERAGE (median) house price in Sydney is about AU$1M!!
Which means with say a 20% deposit and a young-ish couple earning say $150k combined, it's $40k/yr just to service the interest on the loan, before even paying off the capital. (Many current/existing loans are locked in at around 5% mortgage interest rate here, even though the rate is lower now). Pretty scary really, especially as the house price market is leveling off or even falling a bit here.
In this case, the use of the word ‘comfortable’ translates to: ‘We have lots of money but society considers it crass to say that on a television program about how people are struggling so I’m going to use the word ‘comfortable’ instead to describe our financial situation’.
@@MMG008 Doubt that..i suppose in Straya having a million dollar mortgage is a status symbol to impress the friends you don't like.. she could not even enjoy motherhood as had to get straight back to work..think its endemic in Straya
1 million dollars houses are the norm in Sydney that's why
Size of the that bloody country, you'd have thought houses would be free.
TS50ER, now you know why the Aussie looks fat with no muscle. They are just flabby all over. Lazy people works 4-day week and no work from 6.00pm. How you think they earn money? The country has to sell itself to China? Off course they have? US is as bad and as fat bump. They don't have money to lend to the Aussie, let's face it. But the problem with the Australian, they never have any gratitude, just like that Hastie fella.
Aramsa Wafer where exactly are you from? Out of curiosity?! You don’t seem to know much at all... I don’t know anyone who works 4 days a week. To have a mortgage here you need two people to be working 5-6 days a week
Aramsa Wafer you know there is a thing called night shift too right?! Look at you on your computer in your mums basement making all these uneducated, arrogant comments 🤣
Aramsa’s visa must have been cancelled lol back to the desert with your cousin bride you go
Tru dat!!
This is why I'm done with Australia, don't get me wrong, I will always love Australia as a country but I refuse to be a debt slave
You can always love any land or people, just never ever be a debt slave to anyone.
bye bye, I'll assume that you'll go to some poor Asian country where the locals will hate you for being 'rich' and 'spoiled' not unlike they way we see the Chinese here.
No one ever said you had to be a debt slave.
Are you going to China or the USA?
@@georgewbushcenterforintell147 neither, ya mum's house
Australia is unique in pushing Housing Unaffordability Higher as National policy.
That’s what I was wondering. The featured couple’s home didn’t seem like it would have a million dollar mortgage.
@@jennymisteqq5399 Willoughby is a higher-end suburb in Sydney (~20 mins drive to CBD). I'd guess that place was priced at $1.5 million minimum (prob closer to 2).
Yeah they have no other option than to pander to the boomers and their assets.
No that's not true. European property is so expensive that renters take 20yr leases and consider that "buying" a property as they can sublease it. Some have 100yr leases. They can not afford the property ever so they console themselves with long term leases. You can still buy and own land here. Stop your complaining. It's pathetic.
@@benmorris1968 your mis-informed re European Property. Do you understand how long leases work? i would suggest..educate urself before making things up.
Economists saying that high level of debts are Ok is like a guy saying he is financially sound because he can pay the minimum amount on his credit card bill every month.
innoccente1 household debt is most definitely not okay, but government debt is manageable
Dylan Clements yea....
innoccente1 I mean you do know a Credit Card is basically for borrowing money, right?
KingCP08 :D That’s right. Under no circumstances should anyone use credit cards. All it does it get one into more debt. Everyone survived before credit cards were ever around.
@@dylanclements1875 who pays government debt then? The Debt Fairy?
Sleeping at peace is way more comfortable than sleeping in a comfortable house that will cost you a million dollar.
"Matrix is a system Neo...and that system is our enemy"
At 36 i've decided no kids, no debt, no mortgage, no stress
Exactly 👍.
I wouldn't bring kids into this world of shit only to become future slaves to the government!
@@shco1358 uhhh the price will increase. Just not now.
Sh Co the price will eventually increase
You are a very smart person.
God this docu is like watching a horror movie
And the suffering is real!
Real life horror story
This doco is essentially a beat up. The only thing this segment said is that the banks are so flush with profit. Debt to local debtors is not an issue. Debt to ourselves is irrelevant domestically to macro economic positions. Essentially that debt ratio just says that australian banks are amongst the most wealthy in the world.
@@neo-vj4zq umm...so banks being more interested in lending to non productive assets like housing, over productive businesses, isn't a problem to you?
Yes, unfortunately that horror movie will eventually turn into a true story.
"we're comfortable"
Every rich person ever 😂
-$1,000,000 =rich??
They aren’t rich. They just want to look the part. Anyone who has debt isn’t rich
Well rich people aren't in normal jobs they are either old money or entrepreneurs living in mega million dollar houses.
They aren't rich. They have a million $ mortgage, but can service the debt as long as nothing goes wrong.
@@ambycakes there's a thing called good debt
I’d love to see a “one year later” recap with all these people.
It's GREED that's killing everything.
That greed has been carefully nurtured and exploited by a certain group of people. It's far from accidental.
Greed translates into votes
It is human nature to want more and more. It is not going to go anywhere. It is here to say.
Return back to old days. Form small communities, grow your own food, minimise the usage of electricals and electronics ...develop an ecosystem,silent yet hidden away from the system.
This was going to happen. The so called white - western arrogance comes from the industrialized Europe ,have you ever read about how people in Europe were neck deep in poverty before 19th century. Heck, even London had scarcity of toilests and amenities 70 years ago...but you never sit back...detach....and think what's going on. The modern world and system was based on a hollow framework to begin with. The excessive dependence on electronics and electricals was never meant for humans...
We could still form old communities ,bit by bit, piece by piece , away from cities , developing our own little organised framework, a system based on support and selflessness ( which you all lack) a system so self sufficient and self reliant that it doesn't need the modern amenities..education provided to children for fee ..libabries owned by the community etc etc.
Yeah government and union leaders taking more , social democracy screw the majority
“Comfortable” yeah ok with a million dollar mortgage. They look like they are already in their late 40s with young kids wait till the school fees kick in and the rest.
They probably don't want to 'cry poor'
won't be "comfortable" when He loses his job when his bank makes the 'stuff' cutbacks ;) Her 'consulting agency' is like a part time job , it only pays if she has customers . Hard to find customers in a recession lol ;) Let's see in 6 months if they are still "comfortable" or will She file for divorce and try to 'scam' a house out of this simp guy or not ... LOL ;)
@JonV do you know even know Willoughby? Most homes there and the rest of the North Shore go for two to three million. Most two-bedroom apartments are at least a million. If they sold their house with the mortgage, they would still be ok.
@@sks6763 unless the housing bubble bursts and they're in negative equity. Wait, that's never happened before has it??? House prices only ever go up right?
Private school too.
I was born and raised in Sydney.
I served my country in the Royal Australian Navy. After getting out I noticed that I couldn't buy a house.
There's no help for Aussie Veterans. I noticed I couldn't afford to buy a home in the city I was born and raised. All the careers I was qualified to payed about the same. Fortunately im married to an American, which gave us more options. The Wife and I and the kids packed up said goodbye to Australia :(
We now live in the USA now. We are doing better now then we ever have. We can buy a house with no issues. I have way more career options that pay way more. It's sad that this has happened to Australia but I don't see the politicians doing anything about this.
Hmmm that’s really interesting. Not much help for American vets either though. Yeah our wages are pretty high though.
Good on you, the U.S seems to be a far better option financially
@@jimandy9472 thanks. They definitely help Vets more here. I ended up joining the US Navy so I have even more options once I get out. America takes way better care of there Veteran's.
How about US health care though, is it as bad as they say?
@@illletmyselfout.8516 I'm in the US Military now so my family has full coverage. The system is kinda different. Health insurance is linked a lot with jobs over here. Getting a good government or State job tends to provide free
Or cheap insurance. I plan on staying in a career field that provides that.
Australia: "We have the most debt!"
Canada: Hold my beer
Let me introduce you to South Korea
Hell ya .. Canada rules the debt game
Pretty much all developed western countries have large swaths of their populaces living beyond their means.
Loll😂
@@scarpfish That's how the economic system works. It is important that people take loans. That's how new money is created. There has to be debt on the one side to have wealth on the other, no wealth without debt.
It's not just developed western countries by the way.
Working your whole life just for a roof over your head, crazy. No thanks
Glenn Carle ya but if you just buy for 5 years , rent some rooms out , turn a profit . Easy way to make 100 grand
What about when you're renting a home, don't you have to work then?
Glenn Carle you can rent for half the cost
You're right it is crazy I started looking for alternatives a few years ago, sold my big house in North America, got myself debt free and now live in SE Asia comfortably, you really have to think outside the box the system wants to trap you
@@simoncarter5951 you can also buy something for half the price
If you owe someone $1,000 it’s your problem, if you owe someone $1,000,000 it’s their problem 😂
Want to credit who actually said that?
@ryan while parts of it is true, make sure to add plenty more zero's behind the comma before your analogy kicks in. A million is far from
Ryan Calleja my father told me that in 1972. 👍
james my father.
Not sure I follow... if someone owes a bank 1 million for a mortgage, and they default, the bank just takes the house... which would only be bad for the bank if housing prices tanked... and even that wouldn't be too bad for the bank because prices tend to recover... i.e. California post 2008
That banker doesn't blink while being interviewed.
You know about lizards and all, right?
Rohit I think it’s the fishes... he knows all about the fishes.
😰😰😰😰😰😰😁😁😁😁
Floor heating in a place where its always hot???
just put socks on!
@Jeff Webb a bit nippy, haha +15 degrees?
Haha I thought the same it's 45 degrees today in Sydney.
Tile and concrete floors stay pretty cold, even in the summer. It’s useful in bathrooms mostly. Anywhere else in the house and I’d agree, just put on socks or slippers.
Credit does not exist. There is only debt.
Superficiality. Vanity. Greed for status. This is what drives debt. People buying homes and acquiring mortgages they can't afford. People buying cars they can't afford. People taking lavish holidays (for social media posts) they can't afford. So they put it all on credit. Then they acquire something else...stress, anxiety, depression, isolation, anger, frustration, loneliness, alienation, grief. This is what happens when the things that you own end up owning you.
So true
Worse part? Society looks at you weird if you don't dive into being a debt slave, all because "well everyone's doing it, mate"
It's so stupid.
@@gjaeigjiajeg It's their loss lmao
@@gjaeigjiajeg i know dude, but i think it gets better, i was in debt 20-26, once i realized it was all a scam ive been debt free since 26 (now 31) and i am so liberated its amazing.
Very well stated!
People need to build some mental resilience
and not play this incessant game of Keeping up with the Jones'
👏
Yep, 4 kids, trolley full of processed food, overweight, renting.....sounds like Australia!!!!!
+ single mother lol.
Murica
That's ok cuz the idiots who rack up millions of dollars in mortgage debt will also pay taxes that will go to feed these bogans.
Where's the father/s . Who's paying for these children. We need to teach people personal responsibility, both mothers and fathers that might walk out.
Looks well fed on Nutella
Everything a Costco comes in bulk, including many of their shoppers.
Ha ha true that!!! Doesn't look like she's missed out on a meal !!!!
David King LoL so true
If you do price comparison, a lot of Aldi products cost the same as Costco without needing to buy in bulk
@@z.deutch1334 I do like Aldi foods. I would limit my folks using food stamps to Aldi foods. The problem is they would not have the 25 cents for the cart usage.
🤣
its high time people start calling it as 'unreal estate' as opposed to 'real estate'.. what is real in this?!!
that's nearer to the truth
lol! *lives in willoughby and drives a Mercedes*, "im not well off, just comfy..."
It’s amazing how interconnected we all are now. I suspect WW3 will be largely linked to worldwide debt.
I live in the South Eastern suburbs of Melbourne, I would consider my area middle class, I rent here. The area I am is very high in immigrants and working class people. Yet I see so many people driving in brand new cars and the amount of Mercedes, Audi and even Landrovers I am seeing here is actually very scary. It's not just houses we have to worry about, they will be the endgame but people are living champagne lifestyles on beer budgets, there is no way this can last long term. When she goes crash its going to sound like an earthquake that will rock the world.
Steve Knight ... agreed! I thought I was thinking how is it possible .. which suburb?
A lot of them are loaned out, I'm sure.
To pretend they are rich. "Keeping up with the Joneses" attitude
@@blank.9301 yes thats it in a nutshell.
Well why are lenders risking their money by lending to them lol
I just got my citizenship last week. I want to go back to Finland now
Go no one is going miss you.
@@maurixiogarciasanchez2278 get a life! lol
Or come to Algeria
If you are a good girl i don't have problem
So we can be friends and you are welcome in Algeria
wow, this was absolutely fascinating. I've always found a lot of similarities between the cost of living in Australia and the cost of living in many cities in Canada. Our household debt ratio is 170% as well. I wonder if this is the same trajectory we're headed down.
This should be done, for the top 10 countries. This is a solid information video
Same situation here in New Zealand. Low interest rates and people here are encouraged to spend spend spend. If you are a saver you receive very little interest and pay 33% tax on the little you do receive. All very scary to me.
If people don't spend then it all comes crashing down
Savers are not wanted anymore. They are paid tiny interest that doesn't beat inflation so they are really losing money if they keep in bank. People are encouraged to spend, borrow, work and spend more so that economy can stay afloat.
Don't say such terrible things. I'm planning to flee to NZ before the Global collapse hits, lol.
@@comradebear9477 You might want to rethink fleeing to NZ xD
@@comradebear9477 think again.
it's expensive to live here
That guy representing the bank is creepy ....he does not blink
You’ve clearly never worked in financial services sector. There are bots like this one all over the place! Lol
Hey! I noticed that too! He must be a reptilian!! :)
Maybe too much cocaine.
At 47 we bought a property with a liveable shed for less than $140k in FNQ, we don’t have a mortgage or owe any money to anyone, the stress relief is huge. I’m not a city person but I cannot fathom the mentality of a million dollar debt to live in one, that would drive me insane. Too many people want the easy path that debt provides, without ever knowing the true cost to mental health and well-being.
three years on can we have a sequel episode please
I guess living within my financial means and avoiding debt is no longer an option? The casual attitude about living on the edge is really amazing to me. One small catastrophe and these people will lose everything.
"What goes up, must come down" Always has and always will.
Exactly 👍. Because economics is cyclical.
Indeed
But the question is when will it come down and when it does, how far down.
@@sensaznal tough to say, but my guess it will go extremely low. Here where i live (Norway) i'm just waiting for the next crash to come because it will come and it will be really bad
@@TheLassenman I live in Sydney and the house price has increased 80% since 2010, only 2018 we seen a drop in house price by only 10% but right now the house prices are going back up. Even the clearance rate are at 74%, it was at a low of 51% during 2018.
Shopping list:
Mac n Cheese
Noodles
Dish Soap
Laundry Liquid
Nutella
Party Pies
Milk
Popcorn
Bread
Dinner Rolls
Bolognese Sauce
Most of these items can be made at home for far more cheaper 😂 heck I'm working and still make my own bread, spaghetti sauce, chocolate spread etc. Surely she can find some time off to make them (they aren't even that difficult/time-consuming; you can make the bread overnight and bake in the morning when you wake up etc).
It’s strange how “our” abc is allowing comments once again.
I bet not for long
Not an election any time soon
now we just need the BOM to do the same..
RUclips will shut an uploader down if that user doesn't delete bad user comments, like death threats, hate speech etc. I thought there was potentially conspiracy stuff going on too for some media companies shutting down the youtube comment sections. Some media companies don't have the resources to edit 10,000s of comments.
Or about Hong Kong
Watched this a year later, australia houses soar, it will keep going. I am planning to move to desert now.
Literally keeping up with the Joneses.
The main problem is that people who borrow like these individuals are pricing for perfection. Sure the loan payments are "manageable" when things are good. What happens, if you lose your job, become ill, have an emergency of some sort, interest rates go up etc. Then things can spiral down really fast. Not one of these individuals thinks about that.
A million dollar mortgage.... house prices drop by 20-25% and the guy gets crook or loses his job their completely stuffed. End up with a 150-200k mortgage sleeping in the car. 1 mill mortgage= madness
Bloody hell people owe 1 million dollars and they are ahead 2 months in payments ....... you still owe 1 million wake the hell up!
Imagine the total repayable including interest
Mark Jones buy now pay forever
Imagine when interest rates head back up 😱
Yeah here we are in 2021, in the middle of recession and the property market is booming.
That's a beautiful city visual with wonderful skyline and homes!!
Seeing how struggling families live today makes me think of how my parents and grandparents lived. Struggling families live like kings by comparison and they suffer the disease of kings, over weight and all that comes with it.
Yes mr.King youre right.. the poor seem to think processed meat and nutella is the cheap way to eat. have they never heard of rice and beans
@@Tantium I have money, but I eat rice and beans every day, the plate is called a casado. A very wealthy man told me years ago, I don't mind spending money, but I hate wasting it. I have known many wealthy men and the thing we have in common is the work ethic.
you know, they look like they live like kings but they are poor as slaves (think about them spending a lifetime's worth of wages to service their mortgage). Meanwhile, your parents probably lived like slaves, but at least they were free.
Yes many are very big that have low income. Fried processed food. I made soup two nights ago. Took me hours but lasted our family three days. All vegetable.
@@intuitivediane I now live in Costa Rica and eat fairly healthy here.
1million mortgage in willoughby? Must have bought 10 years ago
You are smart mate. The reason why they are comfortable with the debt is that they can easily sell that property and make another million.
Spence probably more than 10 years ago. We bought our flat in the Sydney’s eastern suburb 15 years ago for 400k and now you won’t get the similar one less than 1 million.
It's over in Oz. Not "if" but "when." And "when" is just around the corner. Very soon Australia will be known as "Foreclosure Land."
New China
It’s very similar all around the globe
Not if the gov can keep kicking the can further and further where they want the prices to go up more stamp duty for them more revenue for them to spend on stupid schemes
@@sweetvuvuzela4634 yeah social democracy
yawn, same old tune been hearing it for years. just how long are you gonna wait?
I'd rather have more cash than a big house...🙂🌟🌟🌟🌟 then I'm free to do what I want...🌏🌼✈
Not having a house doesn't mean you have more cash. Mortgage payments are often lower than what many renters have to pay. While renting, all that rent money goes into the pockets of the landlord, you basically pay off the mortgage of someone else and keep paying even beyond that.
The best thing one can do nowadays is to live with your parents as long as possible, assuming you have loving parents who care for you. Otherwise you are just burning away money and making others richer.
@@maythesciencebewithyou well I do have a house, but a lovely small one
$1,000,000.00 Australian Dollars is about $686,000 USD. My goodness! That is a lot of money. Depending on where you live in Florida, you might be able to buy at least two 3 bed/2 bath homes. Even in my city, homes are not that expensive compared to Australia.
Would love to come to your country and live there. Except I'm asian so I might not be so welcomed.
@@gjaeigjiajeg you are welcomed and live your best live
Our taxes nuts in Australia the left side still blame capialism so they attack banks
Anyone with a brain is just going to wait for the crash.
forever0042000 It’s a big world the grass is always greener somewhere. Everyone’s great great grandparents or older relatives did it at some point coming to this nation so what’s stopping you leaving if it goes south.
....and it’s going to be a big one!
Chinese buyers will keep it strong
The crash is 2 months away. Wait for it.
Uninstall I am waiting
doesn't have any concerns .... HAHA HE IS THE CEO OF A BANK OFCOURSE HE DOESN"T HAVE CONCERNS
YES these two and there debt is nothing but a cruel joke on the rest of us .Wages of a bank CEO are way above us normal workers.HAHAHAHA.
His salary is guaranteed so he gives zero shits. If the economy fails from his idiocy then the government bails him out and he can just blame the market and keep his job
@@TheTeremaster very true
Face of a well groomed devil. Hahahahaha
Who’s here during the current recession with housing booming again
How the hell could you feel comfortable with a 1 mil loan!
Just make it the loan that you really NEVER pay. Because it's a million dollars anyway and after that would you really be needing to borrow ANYMORE' and because you're already got the money just pay IT of but in your time 💯💯 Percent 🧞
everyone in Sydney pretty much has a 1 million loan it's become common
ask their shrink
They probably make 350k a year and that house would be worth 2.5m.
How can prices rise like that in a country that has hardly any people and abundant land, something ain't right.
That's because government is restricting land. Sydney and Melbourne account for 40% of population. No other country in the world is that concentrated in two cities. Government restricts land because they don't want to spend on infrastructures, lack of people and cost billions. Also jobs are concentrated in big cities. Further, Australian growth come from immigration which new migrants (could be language, culture and job issues) concentrate in those two cities.
Mike L
That's the globalists bringing in immigrants to prop up the real estate, because they are invested in the big cities, just wait and see what happens when these elitists get their money out, and watch the roof fall in.
@@douglee5599 Nah, most of them are from China. There are 1.4 billion of them and middle class is getting wealthy and Australia has tiny population of 25 million and a fantastic country to live unlike USA which is a mess. So plenty of those 1.4 billion people to pump our tiny population property price up. It will take thousands of years especially now China changed to 2 child policy so their population is growing (10% growth of 1.4 billion is 140 million people... many times population of Australia).
@@michaellan78 because gov owns all the non private land classed as (crown land)......such a load of crap, australia is shit.
Wolf
Usually the government owns all the land, including the land your home is build on, you just have a title to use it until they want it back.
We're still in the aftermath of the 2008 GFC. Nothing was resolved or fixed. In fact the malfeasance has only gotten bigger and the inevitable correction more painful than it needs to be.
I totally agree.
13 years after the gfc people don’t realise that things are much much worse.
I didnt know Australia was part of the struggle too!!
Things are rough all over
Our taxes to high in Australia
10:41 "She watches every cent she spends at the shops, no discretionary spending here".
10:48 Loads her cart with kilo packs of expensive Nutella.
Spot.on.
Congrats guys, you got the joke the editor made by intentionally framing that part of the video directly after the statement about discretionary spending.
Nutella is high priced sugar.
But if she truly sticks to $70 a week for her and four children, that’s amazing. I don’t know how she does it.
Costco is busted with bulk sales.
I came here to listen to the Aussie accents.
I am American and this is therapy
@@MamaBearSWAG I'm Australian and I find the vocal inflection to be annoying.
Very interesting but one important factor in the reduction in spending is the casualisation of the workforce. Businesses, large and small need to rely on casual labour because of the unpredictability of sales but this in turn leads to lower sales/demand for product because people who are already struggling under a huge debt burden are holding on to their cash in case there is no work the following week.
I still demand to know what the contract details were that Andrews signed Victoria up to in the Belt and Road funded project...
This is total madness , it will end in Tears , IMHO . good luck Australia , i think we will need it .
Trouble when interest up or job/health issue.
Interest rates are so low because if they were where they should at around 7-9% the whole house of cards would collapse.
Unless it goes lower, it's all going to collapse anyway.
Rohit if it goes lower it will just add air to the bubble and cause more damage when it eventually implodes. I believe we are witnessing the death of neoliberal economics worldwide and personally I’m salivating at the thought. That’s why a decade or so ago i bought gold, a lot of gold.
This was IRELAND up to 2007 learn from our mistakes !!!!!!
The people in charge of it all are not likely to do such a thing.
the people who has the finger on the button have a vested interest to keep this thing going. They have no interest in avoiding mistakes so long as their pockets stay heavy.
1 year later.. we are in recession, yet house prices are increasing in Australia
Same here in Canada, house prices almost doubled in just a year
@@ranaamache for the price to double, someone obviously has to pay for it (or agree to take out such a loan). How is it that the next generation of Canadians were able to justify taking in effectively double the amount of debt compared to the previous generation for that same house?
"there's no discretionary spending here." Her BMI would beg to differ.
If you don't have nice things to say, just don't say anything at all
Actually most of the time eating cheap unhealthy salt, fat and sugar filled food causes weight gain.
You can spend less than a summer bikini body model on food and still end up getting fat. It's all about how many calories you consume and if you exercise or not.
You can eat healthy and cheap too. She bought two big Nutella that is full with sugar. I would not eat that even they are free. Unhealthy eating is actually very expensive then healthy eating
Further, the more sugar you eat the more you want to eat. Sugar is very addictive. The more you eat the more you spend. Nutella is full with sugar and very expensive too. You can get lite olive spread from Aldi for much cheaper and much healthier then Nutella. She is not shopping smarter and unhealthy.
Small fish comment...this family is a victim of a greedy economic system.
The only things Banks and Real estate were or are honest about, is that their benefactors in parliamentary will be expected to put them first. They must always get their return.
WOAH WOAH are you suggesting house prices can't just keep doubling every 7-10 years!! Outrageous!!
Great doco.
I have no debt $0. I don't owe anyone or any bank a cent. I have very few possessions to worry about and I feel great. I used to own 2 houses and land and was always stressed out. I live on little money and can do most things. People just buy stuff to fill up their houses.
Likewise I cashed in, moved to SE Asia @50 and live a minimalist lifestyle completely debt free, best thing I've done
@@ubonrat8653 I would love to live that life!
May i ask, how do you generate an income over there, did you have to change careers?
Or are you living on savings?
@@morningstar6038 My guess is Thailand
@@kingpin5283 I have rental properties in Thailand
@@morningstar6038 Thailand 🇹🇭
Come to QLD. We have an oversupply of units so they are cheap as. Great beaches and warm weather await you and your family.
L higgs
Too hot
yes but its beautiful..the drawback is the people though... just saying it was queenslanders who were responsible for re-electing Scummo and fraudberg.
I have seen many businesses closing down as government supporting more to large scale operations. I have seen many infrastructure changes like to give bus stop and changing pedestrians crossing in a favour of large scale retailers; doesn’t matter surrounding businesses suffers or not.
Franchise are retailers closing down since Kevin Rudd
I wonder when all this madness is going to end. The world is tired of this rat race.
When individuals start letting go of materialistic goals that don't matter in a good life
Totally agree
We need to be more productive the gent says, that is a very big deal for Australia, why? Cause it produces very little these days. The imports outnumber the exports.
Foreign ownership and negative gearing has utterly condemned young Australian families to either never owning their own home or the most insane mortgages in the world
Wondering what the monthly payment is...and if they have aflack insurance. How many years do they fiance and is it a fixed rate..
The house shown in the first few frames, that I assumed belong to the couple w the million $ mortgage: that house in middle GA would cost $150k
I thought I am in USA in terrible shape.This makes me feel alive.
Oh how i wish i was born in the US!
@@jimandy9472 no federal sales tax in USA = better profit for business and lower prices for consumers
We are so close to something truly terrible happening. People should be really really scared of whats coming.
Still waiting!
Actually that couple at the start is doing pretty well. A $1million mortgage in Willoughby, which has a median house price of $2,350,000
Here post covid. Boy if you thought affordability was bad 3 yrs ago. Imagine buying now when everything in the regions went up 40% and interest rates jumped up 4%.
I want it to collapse , so i can get a cheap home . You monsters .
LOL 🤣🤣
A collapse is house prices = collapse in bank lending and zero access to credit so you won’t get a loan for your hypothetical ‘cheap home’
@@MMG008
I suggest all the young gens to crash the economy and save hard spend less and do not buy the boomers overpriced houses. If the Asian immigrants choose to be then so be it but if we keep going that way then in a few gens Australia will be half Asian better off moving anyway
um yeah , good luck on that .maybe start with a cheaper house
Lol at all the whiny people not owning their own home. Maybe try working abit harder for once and stop feeling the entitlement
Sure it's manageable at 3.3% interest rate. But it was 9% less than a decade ago, it will go up again...
Michael..I remember in the late eighties interest rate was 15%
Wanna bet
Rates will never go back to 9% mate. Interest rates will remain low globally for the foreseeable future.
Core Prime I understand you have a great crystal ball but I’m interested how you come to the conclusion that after negative rates, they will go double digits ?
Core Prime In the 90’s Japan had a housing bust, the Central bank cut rates to zero (where it has remained 20 year’s later), implemented massive stimulus (still going) and where is the hyperinflation? They still can’t get inflation going.
If you want to look at what the next 20 years for the West looks like, look no further than Japan. The reason why Japan hasn’t generated any inflation despite continuous stimulus and low rates is because of their structural problems: ageing population, under employment, falling productivity and massively high debt......sound familiar?
I hope your crypto position works out for you though.
tent amongst the foreshore sounds good
Anyone know the name of the song at 11:25? I know it but I can't remember what it's called