Housing crisis and inflation

Fellow Aussies,

One in 2 home owners are facing financial crisis due to high interest rates and inflation.

Even more frustated when you hear banks making billions of dollars , while we work harder and harder.

And your loan borrowing capacity has dropped by 30%.

And the number of houses built are not able to match the demand.

Rental prices are through the roof.

Something isn't right.
Your thoughts?

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dancingtongue · 80-89, M

Not an Aussie, but most of what you say is true in the U.S. as well. And not to belittle the seriousness of the issues today, but I recall the day after I took out my first mortgage to buy my first home when the prime rate had dropped a half percentage point I felt I had made the biggest mistake of my life. It was a momentary fluke and the interest rates soared after that, and the price of housing blasted off for outer space. Never could have done it without a no down-payment, low interest rate Veteran's mortgage which I'm not sure are even offered these days. Took a leap of faith. I remember my parents feeling the same way when they bought our new house in the mid-1950's for a fifth of what I paid a decade later. I suspect that starter home always is going to be a challenge until you build up equity.

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orioninthenight · M

@whowasthatmaskedman I have a VA loan....I have to say it wasn't a huge savings in interest rate on my mortgage. The primary advantage was not having to put down any money to take the loan.

orioninthenight · M

@whowasthatmaskedman Actually the only way I got the rate down was by working directly with the builder.

whowasthatmaskedman · 70-79, M

@orioninthenight We take all the advanatges the local market allows . In my case we bought and paid of the land first, which actually made it harder to get a loan with all our savings being in the land and the banks finding it too hard to look up "equity " in the dictionary. So I phoned a building society and told them what we had and they said "Sure. Tell us how much you need."😷

TheOneyouwerewarnedabout · 41-45, MVIP

cheapest rent in my area would be around $400 pw. for a 1x bed unit..
theyre not building houses fast enough.

you know what would eleviate this?

500,000 more imigrants per year, to all compete with the same amount of ... lack of houses..

ppl need hanging for what they to continually do to us

-newcastle 🇦🇺

whowasthatmaskedman · 70-79, M

Rental vacancy rates are reportedly down to just above 1%, making the whole thing even harder. I am certainly glad I am not starting our now.. On the other hand, when we did start out we were facing interest rates of 17.5 %😷

JovialMoose · 46-50, M

I can actually earn money with my savings in the bank?

Activitykittens

I don't know why we are doing this to ourselves, and to our children 🥺

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