Well ladies and gentlemen it seems the so called perpetual increase in house prices here in Australiua is nothing more than a direct consequence of the debt that has been used to fuel them !! There is nothing special about house prices in australia contrary to the way the spruikers want to portray it as some sort of endless rise with no abatement in site.

I'm just curious as to when we actually see this investment generate some real wealth and make the debt clock either slow down or run backwards ?

http://www.australiandebtclock.com.au/

---

Sir lastnail wrote on Jan 8^th, 2016 at 9:50am:

Well ladies and gentlemen it seems the so called perpetual increase in house prices here in Australiua is nothing more than a direct consequence of the debt that has been used to fuel them !! There is nothing special about house prices in australia contrary to the way the spruikers want to portray it as some sort of endless rise with no abatement in site. I'm just curious as to when we actually see this investment generate some real wealth and make the debt clock either slow down or run backwards ? http://www.australiandebtclock.com.au/

If you convert it into USD, does it still increase?

beer wrote on Jan 8^th, 2016 at 11:31am:

Sir lastnail wrote on Jan 8th, 2016 at 9:50am: Well ladies and gentlemen it seems the so called perpetual increase in house prices here in Australiua is nothing more than a direct consequence of the debt that has been used to fuel them !! There is nothing special about house prices in australia contrary to the way the spruikers want to portray it as some sort of endless rise with no abatement in site. I'm just curious as to when we actually see this investment generate some real wealth and make the debt clock either slow down or run backwards ? http://www.australiandebtclock.com.au/ If you convert it into USD, does it still increase?

Should we convert to Zimbabwe currency first? Its wild, jungular and feral.


Quote:

ZWD - Zimbabwean Dollar rates, news, and tools - XE.com www.xe.com › Currency Encyclopedia By April 2009, the Zimbabwe dollar was suspended indefinitely. The government has adopted a multiple currency framework which includes the Australian Dollar, Botswana Pula, British Sterling Pound, Chinese Yuan, Euro, Japanese Yen, Indian Rupee, South African Rand, and United States Dollar.

It seems that bank debt is well and truly entrenched in the australian psychi !!

Sir lastnail wrote on Jan 9^th, 2016 at 9:12am:

It seems that bank debt is well and truly entrenched in the australian psychi !!

Anybody with IQ above 90 will make loan as much as possible. The paper money worth nothing, all governments print (technically only need to adjust number of public debts or deficit in compuyer, not even need to pay for papers) them as much as they can.

Well my take on this is if those private bankers some how crash the government shouldn't bail them out.

They are a company and if they go broke so be it.

What our government should do straight away is set up a government bank leave the people in their houses and transfer the loans over to this new bank.

The biggest mistake our governments have made over the last 25 years is to sell public cash cows like the commonwealth bank Telstra and our utilities including public transport.

not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments

John Smith wrote on Jan 10^th, 2016 at 8:09am:

not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments

Link ?

Bias_2012 wrote on Jan 10^th, 2016 at 8:51am:

John Smith wrote on Jan 10th, 2016 at 8:09am: not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments Link ?

i read the stat about a year ago ... about 80% of loans are 2 yrs ahead. I'll see if I can find it for you

John Smith wrote on Jan 10^th, 2016 at 9:04am:

Bias_2012 wrote on Jan 10th, 2016 at 8:51am: John Smith wrote on Jan 10th, 2016 at 8:09am: not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments Link ? i read the stat about a year ago ... about 80% of loans are 2 yrs ahead. I'll see if I can find it for you

here you go


17/05/2013

Reserve Bank rate cuts have not enticed mortgage holders to decrease their repayments.

"There are about 80 per cent of people in mortgages that are over two years in front of their repayments," said Westpac's chief product officer Jim Tate. "Not because they have actively put more in but they have left their repayments where they are."

Mr Tate said there were only 170 houses in financial institution possession across Australia, compared to 400 five years ago.

http://www.infochoice.com.au/home-loans/news/80-of-homebuyers-are-two-years-ahead-on-repayment/40793/2/1

Hardly means a thing John, the RBA is helping the mortgagees' in that case, so will the RBA always do that ? what if the RBA raises the interest rate in the near future and the banks follow suit ?

In fact, you'll want to hope that the RBA does raise the rate because that will mean that the economy is improving and home owners will feel secure in their jobs and find it easier to get their debts paid down

But as it is at the moment, with an uncertain economy, debt could end up a real problem 

If the 2 year ahead thing includes offset account balance, it would mean nothing. They can be temporary cash held which needs to pay other debts.

Bias_2012 wrote on Jan 10^th, 2016 at 9:24am:

Hardly means a thing John,

it does to the mortgagee. If RBA raises rates (unlikely for the next couple of years) I assume people will, where necessary, raise their repayments. 

Any debt is bad if the feces becomes airborne.

John Smith wrote on Jan 10^th, 2016 at 8:09am:

not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments

Sun Tzu wrote on Jan 10^th, 2016 at 9:59am:

Any debt is bad if the feces becomes airborne.

Owner occupied housing debt is one of the best and safest debts to have. It is also the best way to accumulate wealth over the long term.
Everyone has to live somewhere so you will always have an asset to support that debt.

Unless you are thinking of living on the streets the only way to avoid a housing debt is to pay rent. That rent will just be paying off someone else's  mortgage and accumulating wealth for them.

John Smith wrote on Jan 10^th, 2016 at 9:53am:

Bias_2012 wrote on Jan 10th, 2016 at 9:24am: Hardly means a thing John, it does to the mortgagee. If RBA raises rates (unlikely for the next couple of years) I assume people will, where necessary, raise their repayments.

You're basically repeating what said, if the rate is raised, it means the economy would be improving and mortgagees' will feel more confident about paying off their debt

In the meantime however, things are not looking good for the economy so mortgagees' would be well advised to make sacrifices beyond what they already do, and voluntarily add extra cash to their payments to reduce their debt burden quicker while there's uncertainty about the economy and since the banks are reducing the amount of principal you can borrow, which is a sign of uncertainty in it self, even the banks are wary

As a typical parent I do have concerns for my children's mortgages.

They all borrow way too much to start off with massive houses with all the trimmings which is a recipe for disaster if rates rise to the amounts we had to endure.

We all were satisfied with a 12 sq house to start off with and upgraded if need be.

The_Barnacle wrote on Jan 10^th, 2016 at 10:17am:

John Smith wrote on Jan 10th, 2016 at 8:09am: not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments Sun Tzu wrote on Jan 10th, 2016 at 9:59am: Any debt is bad if the feces becomes airborne. Owner occupied housing debt is one of the best and safest debts to have. It is also the best way to accumulate wealth over the long term. Everyone has to live somewhere so you will always have an asset to support that debt. Unless you are thinking of living on the streets the only way to avoid a housing debt is to pay rent. That rent will just be paying off someone else's  mortgage and accumulating wealth for them.

I believe people who bought lots of Apple and Microsoft shares years ago instead of houses would disagree with you.

The_Barnacle wrote on Jan 10^th, 2016 at 10:17am:

John Smith wrote on Jan 10th, 2016 at 8:09am: not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments Sun Tzu wrote on Jan 10th, 2016 at 9:59am: Any debt is bad if the feces becomes airborne. Owner occupied housing debt is one of the best and safest debts to have. It is also the best way to accumulate wealth over the long term. Everyone has to live somewhere so you will always have an asset to support that debt. Unless you are thinking of living on the streets the only way to avoid a housing debt is to pay rent. That rent will just be paying off someone else's  mortgage and accumulating wealth for them.

That's contrary to what happened in the GFC which was caused by and large by housing debt !! What happened to the wealth then ?

Also if you build a whole lot of houses in Zimbabwe will that create wealth for them ? I think not ;)

John Smith wrote on Jan 10^th, 2016 at 8:09am:

not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments

And who determines the net value of all of this property ? More fools who have to borrow yet more again to buy it !!

When the feces lands, you can't eat a house. Especially Longweekend58's asbestos infested shack.

Sun Tzu wrote on Jan 10^th, 2016 at 1:28pm:

When the feces lands, you can't eat a house. Especially Longweekend58's asbestos infested shack.

plus a dose of asbestosis and mesothelioma :(

Sir lastnail wrote on Jan 10^th, 2016 at 1:14pm:

John Smith wrote on Jan 10th, 2016 at 8:09am: not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments And who determines the net value of all of this property ? More fools who have to borrow yet more again to buy it !!

gee ..... lets leave it to you to determine shall we?

Sun Tzu wrote on Jan 10^th, 2016 at 12:40pm:

The_Barnacle wrote on Jan 10th, 2016 at 10:17am: John Smith wrote on Jan 10th, 2016 at 8:09am: not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments Sun Tzu wrote on Jan 10th, 2016 at 9:59am: Any debt is bad if the feces becomes airborne. Owner occupied housing debt is one of the best and safest debts to have. It is also the best way to accumulate wealth over the long term. Everyone has to live somewhere so you will always have an asset to support that debt. Unless you are thinking of living on the streets the only way to avoid a housing debt is to pay rent. That rent will just be paying off someone else's  mortgage and accumulating wealth for them. I believe people who bought lots of Apple and Microsoft shares years ago instead of houses would disagree with you.

http://www.ozpolitic.com/forum/YaBB.pl?num=1452324734

John Smith wrote on Jan 10^th, 2016 at 2:56pm:

Sir lastnail wrote on Jan 10th, 2016 at 1:14pm: John Smith wrote on Jan 10th, 2016 at 8:09am: not bad considering that covers about $6 trillion in property and the majority of mortgage repayments are an average of 2 years ahead on repayments And who determines the net value of all of this property ? More fools who have to borrow yet more again to buy it !! gee ..... lets leave it to you to determine shall we?

A house is only worth what the bigger fool is willing to pay for it and there are no shortage of fools in this country ! 500 mill for dicksmith shares :D

Sir lastnail wrote on Jan 10^th, 2016 at 3:00pm:

A house is only worth what the bigger fool is willing to pay for it and there are no shortage of fools in this country

there you go, you've accidentally answered your own question and haven't even realised . Bravo

John Smith wrote on Jan 10^th, 2016 at 3:01pm:

Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: A house is only worth what the bigger fool is willing to pay for it and there are no shortage of fools in this country there you go, you've accidentally answered your own question and haven't even realised . Bravo

WTF !! where's the question ?

Sir lastnail wrote on Jan 10^th, 2016 at 3:03pm:

John Smith wrote on Jan 10th, 2016 at 3:01pm: Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: A house is only worth what the bigger fool is willing to pay for it and there are no shortage of fools in this country there you go, you've accidentally answered your own question and haven't even realised . Bravo WTF !! where's the question ?

Sir lastnail wrote on Jan 10^th, 2016 at 3:00pm:

And who determines the net value of all of this property ?

:D :D

John Smith wrote on Jan 10^th, 2016 at 3:07pm:

Sir lastnail wrote on Jan 10th, 2016 at 3:03pm: John Smith wrote on Jan 10th, 2016 at 3:01pm: Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: A house is only worth what the bigger fool is willing to pay for it and there are no shortage of fools in this country there you go, you've accidentally answered your own question and haven't even realised . Bravo WTF !! where's the question ? Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: And who determines the net value of all of this property ? :D :D

so you agree that fools determine the value as well as the debt levels used to pay for it  :D LOL

Sir lastnail wrote on Jan 10^th, 2016 at 3:19pm:

John Smith wrote on Jan 10th, 2016 at 3:07pm: Sir lastnail wrote on Jan 10th, 2016 at 3:03pm: John Smith wrote on Jan 10th, 2016 at 3:01pm: Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: A house is only worth what the bigger fool is willing to pay for it and there are no shortage of fools in this country there you go, you've accidentally answered your own question and haven't even realised . Bravo WTF !! where's the question ? Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: And who determines the net value of all of this property ? :D :D so you agree that fools determine the value as well as the debt levels used to pay for it  :D LOL

you can call it whatever you like ..... it still won't help you!

John Smith wrote on Jan 11^th, 2016 at 8:18am:

Sir lastnail wrote on Jan 10th, 2016 at 3:19pm: John Smith wrote on Jan 10th, 2016 at 3:07pm: Sir lastnail wrote on Jan 10th, 2016 at 3:03pm: John Smith wrote on Jan 10th, 2016 at 3:01pm: Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: A house is only worth what the bigger fool is willing to pay for it and there are no shortage of fools in this country there you go, you've accidentally answered your own question and haven't even realised . Bravo WTF !! where's the question ? Sir lastnail wrote on Jan 10th, 2016 at 3:00pm: And who determines the net value of all of this property ? :D :D so you agree that fools determine the value as well as the debt levels used to pay for it  :D LOL you can call it whatever you like ..... it still won't help you!

I don't need help. I am debt free and can sleep at night. How about you ?