Mark _australia said...Bit rough to say they gave us debt. Yes they inflated the house prices to ridiculous levels thru neg gearing etc....... but was Gen X and Y who
have to have a 4x2 with home theatre, 2 new cars, a $3000 telly (WTF is with that
, to use for 2 hrs a day
) and a kitchen that pro's would be proud of.... yet they eat out 3 times a week.
All on credit............
Gen Y have houses now?
As for Gen X: That used to be extravagant. Now a $3000 telly, well that's just a month's mortgage, or put it on your own line of credit and it's $5/week. Negligible, the equivalent of two capsicums at Woolies (WTF is with that?).
Screw the mortgage and rent/save? Only cheaper for a year or two anyway, and by then houses are up another 10%.
I can see where they are coming from sometimes. edit: Especially when I've spent as much as a plasma + on windsurfing gear, don't get 2hrs/day out of it, and am the only one in family to us iet
Remember the little formula "buy a house 3x the value of the land"? It's no longer true (of course). There's your biggest financial problem facing most people right there.
It feels ridiculous putting a little 2 x 1 house on a $400,000 piece of land, that's why nobody does it.
* disclaimer: I have no home theater, 2 cars > 15 years old, CRT telly and, OK a 900mm oven/stove (but stove is broken). ...and a big, expensive house, but I've really thought that one through.
