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.

whowasthatmaskedman · 70-79, M

@dancingtongue Good for you. Special Vet benefit loans are outside the marketplace, so dont follow the rules. But I do have to say that any benefit you get from Service is earned and should be taken up wherever possible. 😷

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."😷