Interest rates are likely to rise - but by how much? | 7.30

Interest rates are likely to rise - but by how much? | 7.30 | ABC News

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2 жыл бұрын

The Australian economy is in uncharted territory. The average household is struggling with record levels of debt and many are repaying massive mortgages each month. At the same time, wage growth is stubbornly low but the cost of living is rising. To top it off, the Reserve Bank is now signalling it will likely raise interest rates. Here's part two of an Alan Kohler special series.
Watch part one here: • Many getting left behi...
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Пікірлер: 287

@archiemcdougald5466 2 жыл бұрын

One bad news after the other. One can't just come across good news lately. The suffering is getting out of hand with no hope in sight. I for one has been badly affected by all these and at this point, I'm more interested in a solution. What is the way forward? Do we just keep suffering? How do we the lower class cope with all of these? How do we get past this phase?

@paulagoodman7530 2 жыл бұрын

Practical approach; Reduce things that get you sick (that way, you increase productivity and reduce spending on health), Spend only on necessities, Try to invest what you can and spread them locally and internationally but of course be well informed about where you want to put your money and finally, vote wisely. Made my first million this way earlier this year (got help though). Can comfortably wait out this "phase".

@lelaoliver521 2 жыл бұрын

@@paulagoodman7530 Amazing approach. the health part is apt... What do you mean by you got help? I could definitely use help right now... I look forward to your reply...

@paulagoodman7530 2 жыл бұрын

@@lelaoliver521 Funny enough, I can honestly relate. By help, I mean I got the services of a pro "Nancy Lynn Lewis", she was in the news a lot in 2018. You can check her out online for more.

@patsyryan9316 2 жыл бұрын

@@paulagoodman7530 She's got a pretty decent bio and seems American. Does she work with foreigners?

@Mrcarlson_E 2 жыл бұрын

@@paulagoodman7530 This right here is the second time I am coming across this name in a week,, My colleague at work seems to feel she's some kind of God sent angel,,,

@vivrelavie9237 2 жыл бұрын

It’s so unbelievable that such a vast country would have a housing problem.

@Spacemonkeymojo 2 жыл бұрын

When it’s run by idiots called the LNP it’s not really surprising.

@bronze2956 2 жыл бұрын

It's not a housing problem - it's an affordability problem.

@KenrickLeiba 2 жыл бұрын

The thing is the idea there is actually a shortage is a lie. The major cities have a 20 - 25% unoccupied rate. It's the concept of a house as an investment and not a place to live that has caused the shortage. What we have is a lack of affordable housing and a bunch of people buying land as an investment not to live in. On top of that we have ridiculously high rents.

@Spacemonkeymojo 2 жыл бұрын

@@bronze2956 I’d say it’s both. We don’t exactly build the best apartments in this country. AirBnb is taking over regional areas forcing people who rent to live on the streets or move elsewhere. Housing security is becoming an issue in this country.

@bronze2956 2 жыл бұрын

@@Spacemonkeymojo Yes, I think area has a great deal to do with it. Jobs+city=sky high rent, empty units, developers and owners raking in the big bucks; regional+low availiability but also high affordabilty = no jobs. I do believe housing security is a very big problem and the feeling of insecurity that so many people are walking around with, is also having huge impacts on mental well being. Jobs are also more insecure than they have ever been. Gone are the days where you got a job as a postie, staying in it for life, nice and secure, and afforded a house, and family with a stay at home mum and cruised into a nice retirement, maybe with a holiday home along the way. That is an Aussie dream long since dead.

@N1CKO1138 2 жыл бұрын

>I'm putting money away. >I'm renovating. Pick one.

@ADayInTheLifeOfJames 2 жыл бұрын

Haha straight up; zero sympathy

@Odlaw91 2 жыл бұрын

The banks have a lot to answer for here. Allowing people to borrow so freely, especially those who already have a home, and are looking to buy investment property, they have created a crisis of housing affordability, in the name of increasing their profits. This is particularly horrific, considering the GFC only happened 15 years ago - within living memory. How were they allowed to continue servicing these kinds of loans? The regulators and government who should have been monitoring this were asleep at the wheel - the regulator because it's basically toothless, and the Coalition government, who knew that rising house prices would go down well with their largely enfranchised base. Now we are reaping the rewards for the greed of the banks and government.

@ajr993 2 жыл бұрын

banks are much more careful these days, subprime loans no longer exist. Not sure what you're talking about. This woman also got an adjustable rate mortgage for some reason, God knows why. That was STUPID. You ALWAYS get a fixed rate loan.

@sl2462 2 жыл бұрын

100% spot on. Remember this at the polls when voting. The banks are private, they'll do what is in their best interest. This crisis is the governments and central banks doing. Their inaction has created massive moral hazard and emboldened Australians to take out absurd mortgages. Everyone knew there was an issue by early to mid 2021 but gov stood by and did nothing to discourage the speculation. Who should pay for this now? The speculators or the next generation of young Australians? I know who it should be but our government has a habit of protecting the speculators.

@godamid4889 2 жыл бұрын

@@blank.9301 Lol, I haven't had a fixed rate for the last 15 years. Done a lot better on a variable. Do you work for a bank?

@Lordoftheflamesissketchy 2 жыл бұрын

YEAH idiots going into dept without even having a job

@sadiemakesmesmile 2 жыл бұрын

' The regulators and government who should have been monitoring this were asleep at the wheel ' - no, they were sniffing cocaine during their meetings.

@amraceway 2 жыл бұрын

Interest rates are the least of our economic problems.The destruction of small business and dominance of large corporations paying little tax and sending profits overseas is the real elephant in the room.

@joeldecoster8816 2 жыл бұрын

I hate this world.

@nickc6882 2 жыл бұрын

This is totally misleading - interest rates have ALREADY gone up. Most people are on fixed rates now. Fixed rates for NEW mortgages have gone up 7 times since November 2021. They were 1.99% for a 4 year fixed mortgage then and it’s close to 3.99% now. That’s a 30% increase in mortgage payments. That is before the RBA moves. Please educate people that this has already happened.

@OldManYelllsAtCloud 2 жыл бұрын

Renovating was a bad idea. My bathroom and kitchen are functional but far from pretty. Having a buffer on the home loan was more important for me. My car looks like a dropped pie but own it. When your rates go up I'm sure the new owner of your home will love the renovations 👍

@Kelly-oe8kr 2 жыл бұрын

Soon people will realize the 'Joneses' they SHOULD have been trying to keep up with are people like you Andrew, those who make do with they have and live within their means.

@improvisedsurvival5967 2 жыл бұрын

Never renovate a house you can’t badly afford.

@vanessacaltabiano9775 2 жыл бұрын

I still Drive a Tarago that’s 13 yo with 400,000 kms💔❤️ I’ll drive it till it dies. It’s served me well❤️

@manbha549 2 жыл бұрын

What a colossal f*up. APRA should have stepped in years ago to reign in on the debt. Now it has come down to saving property market or saving economy. Who will RBA and the Govt choose?

@lmimssoi6978 2 жыл бұрын

the RBA has already made their choice, they will save the property market. get ready for $10 a litre petrol and $20 for a coffee

@ewtwetrwerwteet 2 жыл бұрын

@@lmimssoi6978 Meh, prices will always fall in term of Gold and Silver. Only rise in worthless australian pesos, sorry I mean dollars.

@lmimssoi6978 2 жыл бұрын

@@ewtwetrwerwteet 👍

@aysinduarte 2 жыл бұрын

The government and the RBA will not allow for the property market to crash. They have to much vested interest in keeping it propped up. With an upcoming election, they will hold off on any rate rises. They are currently handing out " free" cash like it's going out of fashion. I wonder where they found the funds for that.....

@WholeLottaBulldog 2 жыл бұрын

No sympathy. You kept up with the Jones'. Now it's time to feel the consequences.

@user-jz3kn9pw8d 2 жыл бұрын

Yup. Don’t need new everything every year or 2 🤦🏻‍♀️

@Spacemonkeymojo 2 жыл бұрын

I’m willing to bet the majority of Australians who have purchased property in the past several years are clueless about macroeconomics and even the value of their money. Otherwise house prices wouldn’t be so stupidly high.

@blank.9301 2 жыл бұрын

You're right, that's why there's financial planners...

@Jefferson50 2 жыл бұрын

You know there is a housing bubble when people will pay anything for a house.

@Spacemonkeymojo 2 жыл бұрын

Phillip Lowe should be audited. I just want to make sure he isn’t getting paid under the table to keep rates low by LNP MPs. We need more transparency when it comes to roles like his. The government also wants to allow people to use more super to pay for a house. Not only will that just act to increase house prices, but the money withdrawn will not be able to compound over decades to build up a nice nest egg. These people who use super to pay for a house will be asset rich but cash poor in retirement and as a result will need to rely on the pension. It’s all just so stupid and shortsighted. It makes me hate what this country has become, or maybe it was always like this.

@milld9345 2 жыл бұрын

Politicians don’t care about what happens 20 years down the track, they only care how things look on paper now (whilst they are still in office). It’s the politicians in 20 years time problem. Same with big business.

@joek292 2 жыл бұрын

And then when they retire the house will be part of the assets test and they won't be eligible.

@shalbinsamuel3228 2 жыл бұрын

Agree with you he should be investigated

@Spacemonkeymojo 2 жыл бұрын

@@joek292 they’ll have to rent out a room and live with strangers to get income hahaha.

@jay5954 2 жыл бұрын

they don't care bc the LNP Coalition is just setting up heaps of debt for Labor to inherit

@blank.9301 2 жыл бұрын

I don't own a car, I don't have a mortgage and I pay ~$70 a week for food. I do have a student loan debt but the good thing about that is it's made me not want to get a massive mortgage

@1w561 2 жыл бұрын

Out of interest, what are you eating for $70 a week?

@blank.9301 2 жыл бұрын

@@1w561 not red meat 😅

@neo-vj4zq 2 жыл бұрын

You live off someone else

@improvisedsurvival5967 2 жыл бұрын

I’d rather have a mortgage than student loan debt.

@Volks2462 Жыл бұрын

Lol $70… that must be a lot of toast and 2 minute noodles

@Spacemonkeymojo 2 жыл бұрын

People who take out $1m loans for crappy houses on a small patch of land: “We’re millionaire homeowners now!” People with a brain: “You have $800k debt and $200k equity, you only own the master bedroom.”

@keptinkaos6384 2 жыл бұрын

And if interest rates go up, you might own a couple of bricks because your equity evaporated. And might disappear for years, and it will only take one big fail health otherwise to throw a lot of dreams out on the street. It's happened to us twice.

@realmoa 2 жыл бұрын

Servicing $16,000 in interest but winning $40,000 in capital gains (based on YoY 5% growth) K.

@Spacemonkeymojo 2 жыл бұрын

@@realmoa You didn’t even talk about the principal. Also rates aren’t gonna stay low. Absolutely clueless like most morons who buy and invest in property lmao. You think property will keep growing when rates are rock bottom? Lmao. Clueless. Too many financially stupid people in this country. Also what are you gonna do with a million dollar house living in it? You gonna sell it and move elsewhere? How are you gonna realise that gain? Take out a reverse mortgage and die without passing anything to your kids? Seriously people who think property is a great investment are so stupid and lazy. That’s why renting is so bad in this country.

@boratborat8045 2 жыл бұрын

Some only own the shit house...

@arsehe1929 2 жыл бұрын

Still better than renting. Would rather be building my own equity paying off a loan than losing a good part of my salary to parasites. Complete cash sink

@bluebagel8084 2 жыл бұрын

Remember that the answer to the cost of living is to go easy on the smashed avocados.

@nottenvironmental6208 2 жыл бұрын

Does the decision makers understand their job is to support Australians? When will we get leadership with courage to stand for the people who back their frivolous spending. Our jobs economy and national security should not be gambled in high risk bets.

@godamid4889 2 жыл бұрын

Ask the Libs how the banking royal commission worked out. One year of tighter lending, then it's all forgotten.

@nottenvironmental6208 2 жыл бұрын

@@godamid4889 privatise the profits (including from dead Australians), socialise the losses. Federal ICAC needed. Bring on the postal bank. Owned by us for us. Ban all corporate donations in politics.

@godamid4889 2 жыл бұрын

@@nottenvironmental6208 the sale of the Commonwealth seems not so crash hot these days. Still, it's easy enough to give the finger to the IMF and set up another. It's going to happen, or the foreign owners will continue to dictate our policy.

@watchandyearn1186 2 жыл бұрын

Sadly cheaper housing prices will make it easier to live and afford, but in order to be affordable we need house prices to drop and many people will suffer. As a millennial looking to buy, I’m extremely disenfranchised with how overpriced houses are. Seeing it as place to live rather than an asset is what matters most to me. We’re entering into a phase where it’s lose lose between those who already own a property and those who want to.

@Spacemonkeymojo 2 жыл бұрын

In that case the people who suffer simply overpaid for property. That’s their fault, why should we let future generations suffer because of their stupidity? Prices need to be reset. I don’t care if people suffer, they willingly purchased expensive property assuming rates would be low forever. They basically didn’t even consider that as a risk whatsoever. We shouldn’t take care of these fools. Also, I bet you these people made up lies about their expenditures.

@Ausf 2 жыл бұрын

The problem is, as a millennial, you only ever consider living in a handful suburbs, and so does every one of your fellow millennials. Since you'll never make enough money to buy there, you assume it's impossible to ever buy somewhere to live.

@Ausf 2 жыл бұрын

@@Spacemonkeymojo Very few places will go down in value. You'll be lucky to find them plateau. You might not care if people suffer, but guess who does care? Politicians. Anything that affects the majority of the voter base will not be touched.

@Tazza81 2 жыл бұрын

@@Ausf what a crock of BS. What you are basically saying is that us Millennials should move hundreds of kilometres away from where we live, where we grew up and where our families are in order to afford to live. More to the point, do you fail to comprehend that areas where housing is affordable tend to have SFA jobs?

@blank.9301 2 жыл бұрын

@@Spacemonkeymojo exactly, a house bought for say $250,000 back 15-20 years ago would potentially be worth at least double or more now but what's the point in selling when everywhere else has also gone up anyway....

@blackfeatherstill348 2 жыл бұрын

If interests rates went up, her landlord would probably put the rent up.

@sarcasmo57 2 жыл бұрын

Raise the rates then. Inflation is worse.

@worker-wf2em 2 жыл бұрын

I don’t think it’ll be for long. Wages remain flat. People can only borrow so much. Where do banks think households will suddenly find this extra money? If rates go up the economy will turn sluggish again once people either have no real disposable income or choose to save.

@c.k2778 2 жыл бұрын

If you’re a prospective first-time homebuyer hoping (or praying) home prices will decline in 2022, don’t count on it. If people are waiting for a price to decline, well, it’s not going to happen. Heading into the spring of 2022, mortgage rates have increased over a full percentage point and while purchase demand has cooled, it remains firm. Supply remains near record lows, so home price growth is expected to remain high through the spring homebuying season before cooling off later this year as mortgage rates continue to rise. Investing in REITs will be a right decision as it's also included in a growing number of defined-benefit and defined-contribution investment plans

@theodorerossi7998 2 жыл бұрын

Greatly said! lnvesting in REITs can play an important part in an lnvestment portfolio because they can offer a strong, stable annual dividend and the potential for long-term capital appreciation. REIT total return performance for the last 20 years has outperformed the S&P 500 Index, other indices, and the rate of inflation

@c.k2778 2 жыл бұрын

@Colombo Evelyn Entering an investment on your own can occasionally require much more specialized knowledge. Deciding between debt and equity implies a considerably advanced level of investment knowledge. I'll suggest you get a financial professional with intelligent strategies who'll help you create a suitable plan to maximizing potential performance and minimizing risk.

@c.k2778 2 жыл бұрын

I highly recommend Genevieve Glen Rogers a financial advisor under a licensed body of a wealth management firm. You can look her up on the internet using her full name *(GENEVIEVE GLEN ROGERS)* and get in touch with her. Give it a try and get into success

@svenoliver6040 2 жыл бұрын

Do you have to buy a physical property to invest in real estate?

@yung1448 2 жыл бұрын

Although you can't predict the future; you can prepare. A finance professional will help you to plan ahead by including expectations for items such as inflation and market declines so you can stay on track. Approximately 85% of those working with a financial professional said doing so gave them a greater sense of financial comfort

@froggy0162 2 жыл бұрын

Giant house, big suv and whinging about costs… Ummm…

@milld9345 2 жыл бұрын

Yeah they always show in these type of episodes non struggling families. Oh boo hoo, kids might need to skip swimming lessons. If I’d have it a guess most households would do this and reasses household costs, but I’d hardly call skipping swimming lessons earth shattering and being a bit worried about chipping into savings for renovations.

@xkimopye 2 жыл бұрын

I seriously hope these big fuel prices spell the end of SUVs. I doubt it will, but we can only hope.

@user-jz3kn9pw8d 2 жыл бұрын

@@xkimopye if only. Doesn’t help they can’t drive for shit.

@AuntyNick. 2 жыл бұрын

Well, for me it's ok. I couldn't afford housing so I moved into a campervan and actually managed to save some money. The bank offers me .01% interest. Hopefully now I can get a better interest rate on that at least.

@jesman1216 2 жыл бұрын

What about the amount of money printed here in Australia.. does that have nothing to do with inflation?....

@TC-xx6xj 2 жыл бұрын

Interesting statistic to remember is that the property market is worth around 9 trillion and debt owed by Australians it 2 trillion, LVR of 22% is very conservative overall.. Also remember when a home buyer applies for a home loan interest rate rises are factored in to their application. In Australia banks will not give someone a loan if they are not able to comfortably afford it so majority of homeowners can afford to hold their property when push comes to shove.. interest rate rises, property prices rising and then levelling out for few years all part of the cycle nothing new in the big picture over 20 years

@menangal 2 жыл бұрын

most of banks' profit come from mortgage. when interest rates are so low, in order to generate the same amount of profit, banks will push more borrowings. australians are already used to good times. when we face a little bit of bump in life, reserve bank is so quickly reacting by reducing the interest rates.

@M.-.D 2 жыл бұрын

Great piece. Hopefully it puts things in context for the Australian population. We either add value to resources so the world wants to buy the fruits of everyone’s labour or we start taxing the land we dig up and sell overseas. Only to buy back later. Paying for improvements/manufacturing plus transport costs will always make us the losers.

@lidiasantoro3098 2 жыл бұрын

Foreclosures are the future.

@PapaphobiaPictures 2 жыл бұрын

Abolish the property market. Or offer rent to own HECS style government debts for first homebuyers and for those that will lose out from falling housing prices

@godamid4889 2 жыл бұрын

The government is offering billions of cheap carbon credits to business at tax payer expense. Surely they can offer the same cheap finance to the people they serve?

@PapaphobiaPictures 2 жыл бұрын

@@godamid4889 carbon credits are a way to incentivise transition from polluting factors, and is a good thing. Government can end the subsidies for mining companies though to help offer the same financial assistance for the people 😊

@godamid4889 2 жыл бұрын

@@PapaphobiaPictures carbon credits allow businesses to pollute by purchasing them. They are sold by companies that reduce or have a negative carbon footprint, and are bought by those who have a positive carbon footprint. When the government undercuts the market by $45 dollars or so and sells them at $12 dollars, they are manipulating the market and losing the tax payer that $45 dollars per credit in profit. The carbon credits are artificially devalued and the incentive to reduce pollution is reduced, because it won't cost a polluting business an arm and a leg to buy it's responsibility away. But you knew that, right?

@PapaphobiaPictures 2 жыл бұрын

@@godamid4889 well yeah, but it also offers the incentive to both reduce emissions where possible- so as to not have to pay to offset - and incentivise more green industry

@godamid4889 2 жыл бұрын

@@PapaphobiaPictures I'm not sure you are getting the full extent of the picture. We are being actively divested of sovereign wealth via the carbon credits by the robber barons. In this theft the carbon credits lose both monetary value and environmental value. Move past the binary view that carbon credits are good or bad. Carbon credits are a tool - it's how they are used that makes them good or bad. They are currently very bad.

@zzg2666 2 жыл бұрын

Rental affordability is also an issue. & Apartments are also unaffordable for First Time Home buyers

@Ausf 2 жыл бұрын

Considering how ridiculously low they are, I am going to assume they will rise slightly above ridiculously low, but nowhere near the 1970-2000 rates.

@paulywalnutz5855 2 жыл бұрын

they tend to follow us fed. no way they can have % rates that high. zero chance

@neo-vj4zq 2 жыл бұрын

You are conditioned to think interest rates are low

@paulywalnutz5855 2 жыл бұрын

@@neo-vj4zq interest real rates are negetive

@shauno3429 2 жыл бұрын

The various reserve banks around the world, including ours, have a lot to answer for with these insane near zero percent interest rate targets. 3 percent used to be emergency levels, 3 percent! Current near zero levels have resulted in crazy residential market distortions, gargantuan housing debt levels, massive losses to savers, and what looks a lot like intergenerational theft in the residential property market.

@michelledavies2197 2 жыл бұрын

Totally agree

@liwashaya9641 2 жыл бұрын

I am already enrolled as a student at a uni in Queensland. Can someone here tell me what is an average of living cost that I have to prepare for a month. Is it enough if I only allocate at 1.850 AUD for a month? Thanks for the answer guys.

@williamcrossan9333 2 жыл бұрын

That will be tight but doable. You will need share house accommodation of course. With frugal spending, you can actually still enjoy living. You should be able to go out occasionally, and all that.

@MiggsMultiple 2 жыл бұрын

I'd rather a $120,000 and 12% interest mortgage than a $900,000 mortgage with no interest at all. People whining about high interest on their past pittance of a principal are full of shit and they know it.

@legallyfree2955 2 жыл бұрын

Exactly, if the prices are lower you actually get the opportunity to save up and pay off a decent chunk up front, when I purchased a house I saved for 2 years and paid off nearly 40% straight off the bat, that would be impossible now. Saving for 2 years would be less than 20% of the value now I feel for a comparable property.

@MiggsMultiple 2 жыл бұрын

@@legallyfree2955 I'm happy to hear someone honest about it.... The generation who were in that opportunistic period have exaggerated everything to appear clever in their investments and hard working to their children. They forget we have calculators and everything is documented and can be worked out quite easily.

@kendallbarnard4039 2 жыл бұрын

Yep heard it most of my life "you don't know what it was like have to pay 15% interest! Yeah how mnch did this house cost $30,000?

@MiggsMultiple 2 жыл бұрын

@@kendallbarnard4039 Simply put, the conditions they bought a house back then were no different than financing a car today.

@computer-training-for-seniors 2 жыл бұрын

If I want something I save up for it, even for a home or car. When rates go up you don't want debt, you want to own the banks.

@stevenjoummaa4640 Жыл бұрын

So where do you live while saving up for a house? You'll have no choice but to rent. Which is even worse than paying off a mortgage. Kind of shit attitude to have.

@love86 2 жыл бұрын

It doesn't matter what the interest rate will rise, the house prices are not going down, they might flatline though. The government is depending on high immigrants who will be brining here all the money they can find as they are moving to Australia permanently. Plus stamp duty puts a lot of money in government coffers. This government dumb and leads a ostrich policy. They should develop regional areas with better infrastructure, jobs, high speed internet so those areas can rise and not just mel and Sydney, but the government wants ppl to work in mel or Sydney cbd only hence the crazy prices aswell

@love86 2 жыл бұрын

@@Lycuse I don't live in Australia, we have multiple investment properties in Australia hence the interest in the market. Also you should tell your government to stop inviting high immigration and also stop negative gearing, it might help you guys. Your government has left nothing for the first home buyers. If the property prices go down due to a bit of interest rate rise we will buy more properties and increase our portfolio and if they dont fall our current properties will rise while being cash flow +

@nerdy_dav 2 жыл бұрын

Again. Economic Suicide. Stop negative gearing Stop easy money lending Our system makes it so easy to build and lockup wealth in property for investment. But due to this we are now a very expensive society. We should encourage investment in business and other activities that grow our GDP and exportable goods and services and keeping those competitive with the world. At the moment -> Expensive cost of living = expensive workforce = less profitable business = jobs and money going over seas = Australia steadily going down the shit hole. To fix our economy. Get rid of negative gearing Encourage investment in business. Make us more competitive in goods and services in the world stage.

@jietang118 2 жыл бұрын

Housing affordability is an issue for most developed countries

@joek292 2 жыл бұрын

And?

@ewtwetrwerwteet 2 жыл бұрын

@@joek292 Get yourself more money or go without, simple as that really

@improvisedsurvival5967 2 жыл бұрын

@@ewtwetrwerwteet been screaming this.

@milld9345 2 жыл бұрын

Oh dear her kids might not get swimming lessons and rebudget while she does renovations (hardly going to not be able to pay her mortgage by the sounds of it) meanwhile some people can barely afford rent. If this is struggling for Australians on a mortgage then maybe we don’t have an issue after all. I’d hardly call rebudgeting like that a struggle.

@bofty 2 жыл бұрын

Probably drives an expensive car too

@minorcadence1 2 жыл бұрын

I run a children's after school sport business. If people decide to "stop swimming lessons", then the money doesn't come in for me or my staff.

@milld9345 2 жыл бұрын

@@minorcadence1 sorry but swimming lessons isn’t a vital thing when everything is going to shit (sure it’s important in some regards we don’t want kids drowning but it’s something that can be put on hold). I run a business too and I’m betting that my product will not be on most peoples budgeting list. I have to be realistic of where peoples money will be focused on when budgets get tougher.

@thomasalundago6332 2 жыл бұрын

Property taxes must come down and house prices too I pray.

@obyssey 2 жыл бұрын

when?

@joyaustin6581 2 жыл бұрын

Why renovate a house when you have debt? It’s a luxury not a necessity, unless for safety.

@mattmcguire1577 2 жыл бұрын

One thing in home loans is certain. Over 30 years interest rates will... Go up Go down Stay the same

@AussieGriffin 2 жыл бұрын

So reitirees are at the mercy of the markets, and homeowners are struggling to pay for their current standard of living due to the markets. This article forgot to mention that people on the dole are also getting their rent raised and have no way of getting more money when the government refuses to say if the dole is enough to live on. A.G.

@man.i.literally.failed6772 2 жыл бұрын

No one seems to winge about real estate commissions, you need to make $50-100K profit just to break even, real estate commissions can be much as stamp duty, I reckon commissions should be capped at $5000 per house. It's not just banks hurting us, it's fees too

@mattdenham8057 2 жыл бұрын

Come on tell us the real inflation rate

@kaimingraymondchoi9909 2 жыл бұрын

Government keeps lower interest rate to boost activity, it's understandable. The government should also see the steep increase in house prices and potential increase in interest rate. As a responsible government it should 1) warn home buyers of the risk, make sure they do not over gear, 2) instruct the financial institutions to be more cautious, meaning make sure that borrowers would still be able to repay their mortgages even when interest rate increase 2% in the next 24 months, with due consideration on inflation rate. I am certain that inflation has not been duly included in the banks' calculation.

@blank.9301 2 жыл бұрын

I don't want children so I don't want or need to own a home. If I had the money I'd buy a two bedroom unit in the city

@xkimopye 2 жыл бұрын

I don’t want children either, which allows me to have my house payed off by my mid 30s. Then spend the rest of my life rent and mortgage free.

@matthewthehawk1066 2 жыл бұрын

@@xkimopye good for you,

@kelvinjames6344 2 жыл бұрын

Kingston se south Australia home for 250 000

@cheryl2367 2 жыл бұрын

As a young person like the old retirees who don’t have a mortgage I really thinking rising interest rate would help improve my bank savings. I would have more from the money I made. Win win

@divizionx 2 жыл бұрын

the root cause of all of this the RBA

@obyssey 2 жыл бұрын

house pice stays high, interest rate goes up, then rent should go up. Is our wage going up as well?

@kdegraa 2 жыл бұрын

The Australian interest rates will rise around 2% more than the interbank rate set by the New York Federal Reserve Bank. This is what happens. We could replace the Reserve Bank of Australia with an application that monitors the rate set in America and another application that creates new Australian dollars when the government needs more money and won’t raise taxes.

@kimhendersonfowler2918 2 жыл бұрын

This is Awful when you have Accounts connected to Prime rate plus ?. If Inflation isn’t Bad Enough. Gif Help us All!🙏😞🙏

@yeahnah773 2 жыл бұрын

Housing will double in price, because the dollar inflated.

@tezzdoggy 2 жыл бұрын

How on earth is inflation only 4% where are the shopping at

@grahammewburn 2 жыл бұрын

The discovery of oil peaked in 1964 Last year only 4.7 billion barrels were discovered Mankind consumes 3 billion barrels a month 36 billion barrels PA So 4.7 billion is 31.3 billion barrels short Mankind cannot pump undiscovered oil

@yellowboot6629 2 жыл бұрын

Thanks ❣️🤣

@kelvinjames6344 2 жыл бұрын

Liar loans and what happens when can't repay

@felixnewman2473 2 жыл бұрын

Fix your interest rates, join the army reserve for extra money.

@cheekymonkeygirl3378 2 жыл бұрын

What happens if the interest rate goeses up? 🤐

@amitram2346 2 жыл бұрын

I hope they increase the interest rates to atleast 7%, so the cash rate goes up and inflation stabilises. Help the people saving for a better quality life as opposed to the greedy investors buying property left, right & centre.

@zzg2666 2 жыл бұрын

Supply needs to be increased. More houses / apartments need to be built or more Land released

@yeh.80 2 жыл бұрын

One wonders if this is a consequence of human growth. For the last 100 years the population globally and domestically has increased massively. Anyone who has had a basic induction into biology would be well versed on the idea of population carrying capacity, humans have been able to continually increase this via means such as medicine, education, etc. I do however wonder what the future has in hold, perhaps a third world war, a mass famine/pandemic, who really knows. I do find comfort in the fact that the show must go on, humans or not.

@kiloakim18 2 жыл бұрын

Considering houses as a means of an investment is in the end an open gate to lowered welling being of normal people.

@FerraPizza 2 жыл бұрын

lol... You mean increasing debt per capita to 200% while stagnating income growth is a major economic problem.... I wonder which political party could be blamed for poor governance. Liberals : 1996 - 2007 (13 years) Labor : 2007-2013 (6 years) Liberals : 2013-2022. (9 years)

@williamcrossan9333 2 жыл бұрын

Indeed. I'm trying to work out why Aussies keep voting for the Liberals. I'm assuming they are aspirational. I.e. they all think they're going to be rich.

@hannah-rosecotoavanu8447 2 жыл бұрын

ausi have it easy im from nz and we have petrol at 3 bux a lt average food bill for a family of 4 is 290 on the cheep and interest rates have gone up min wage has gone up but that has made the cost of living go way up but wages haven't gone up our rates have skyrocketed 2 bux for petrol mate lol

@arudee3009 2 жыл бұрын

Increase in interest rates is not gonna fix the underlying problem. First home owners - I wish you luck. Rate rises will hinder your chances even more. And get this over your heads. Interest rate hikes doesnt equal house price drop.

@joebloggs9184 2 жыл бұрын

A friend of mine was mad keen to buy his own place last year, with the hundred grand they had saved... all their savings went to deposit and now have a standard sized mortgage - she works a factory job, he was unemployed, they lived with his mother beforehand, rent-free for years. I wonder how they are going to get along now with 0.25% increases each month, every month...

@mattmcguire1577 2 жыл бұрын

My dad used to say... A couch was a week's pay A car a year's A house 10 year's So 7-9 year's pay is very good.

@neo-vj4zq 2 жыл бұрын

Its trivially much higher with a mean wage of 85k and a mean of 1.4m purchase price. These are people trying to tell you to accept what they want

@williamcrossan9333 2 жыл бұрын

I think he may have mean't paying the house off in 10 years. In the mid 90's, Brisbane housing was 3.5 times average income.

@Ozipeter 2 жыл бұрын

40 MILLION waiting to start their lives in Australia, who cares

@love86 2 жыл бұрын

True ppl forget government is dependent on immigrants who are brining loads of cash as they move here permanently

@Sensist20018 2 жыл бұрын

In Syria and Afghanistan?

@joebloggs9184 2 жыл бұрын

I work at a place where people are now doing more hours and more days in order to pay for the "high cost of living", but to spend your paycheck week to week on frivolous things is only fuelling inflation. We all (as a country) need an economic education on how we can reduce the severity of the cost pressures. I'm not sure these generations can do it... they've never had hard times and as a result are so soft and silly.

@qn5947 2 жыл бұрын

Get out of debts now before you suffocate. Learn from Dave Ramsey and stay debt free.

@xkimopye 2 жыл бұрын

I learn from Gordon Ramsay

@justinchamberlain8913 2 жыл бұрын

Were is the lady from Igleburns Husband? If she does have a husband why she saying she is paying for groceries etc, then say we have a mortgage? Its not hard to teach your children to swim by yourself.

@user-kz8ik8cg2c 2 жыл бұрын

liars: by reducing interest rates that causes inflation

@MyFavoriteColorIsBLUE 2 жыл бұрын

Get rid of the fancy car and the pool, then maybe you can afford the other things Sarina!

@crafty-i-be 2 жыл бұрын

Thr real reason for this financial stress is the structure of the financial system. Debt needs to inflate to hold up the system. It's an exponential debt based system, a ponzi scheme of epic proportions. Mathematically, it was also going to fail since the world left the gold standard. The failure is getting closer. Uncertain times ahead. Buy food.

@grahammewburn 2 жыл бұрын

I bought my first home in the 70s for $12,000. I was earning $3,000 P.A. 4 years income.

@cotts2000 2 жыл бұрын

And now average house price is 32 x annual salary

@samartz 2 жыл бұрын

Anyone in their 40s or older had no excuse! You had the best times to buy a house. Its the current younger generations i feel for

@inish13ers Жыл бұрын

ABC should (and others) should take out-of-date news videos down or ID them is some way. KZfaq should filter them better

@PhilMace 2 жыл бұрын

Could we have an angle on the majority of Australians who are single and rent. We are the people that will be paying for the greed of the indebted home owners.

@joebloggs830 Жыл бұрын

Here's an angle for you, my own experience: In late Dec 2021, my landlord sent me a rent increase to come into effect in 28 days... late Jan 2022. The amount was 20.5% more than current. I google accommodation CPI and was met with a 5.3% figure... I complained the increase was excessive, and my complaint would be mediated by the Residential Tenancies Authority (QLD). Although I lodged my complaint within a couple of hours of receiving it, I didn't hear anything from RTA and had to make a decision at least 7 days prior (which I decided to vacate, not out of financial burden, but out of principle of why could someone treat a good tenant this way). The RTA finally called on the Tuesday after my weekend move-out process had already happened, which I gave them some "very honest" feedback ☹️ Since that was late Jan / Early Feb, I have just "celebrated" six months of homelessness. My car is my refuge, my roof over my head for the past half-year.

@DC180 2 жыл бұрын

roll a dice

@addictcar69 2 жыл бұрын

It's sample just save money stop renovation just be happy you have a home and she have not learned yet🤣🤣🤣

@kelvinjames6344 2 жыл бұрын

Lithgow nsw home for 250000

@bronze2956 2 жыл бұрын

And waterfront properties, at that! (well water with shit in it, but still)

@joek292 2 жыл бұрын

How many jobs you got there bud? Usually a reason for somewhere being cheap

@liammclive4314 2 жыл бұрын

Is there one married mother anymore?

@Travelingman-1980 2 жыл бұрын

I wanna see these mortgage junkies cry on ACA, my savings have been providing cheap money to these kids in a sweetie shop for too long.

@joshnalder5011 2 жыл бұрын

If debt was a sport Australians are world Champions literally and the RBA is our coach cheering us from the sidelines.

@mon4135 2 жыл бұрын

Really can’t empathise with the wealthy old woman who lives in Manly and has a Burberry face mask 😂 And yeah tbh thinking about paying for swimming lessons or adjusting the renovation budget is also not a real struggle lol

@tomjones4451 2 жыл бұрын

Buy what property you can afford, 20 years population will likely grow a lot. Gap between rich and poor will be unbelievable. Love to sell price drop 50% to 100% so that the next generation can buy. Highly unlikely.

@improvisedsurvival5967 2 жыл бұрын

Your mortgage rate isnt fixed.

@bubbleox8631 2 жыл бұрын

Just maybe if you and all future Australian children were given in high school the understand of economics,stock markets,bonds,interest rates and charting if you may have been armed with the desired ability to choose from a different outlook? Ho and at the same time through in learning to drive a motor vehicle correctly

@niksgee3538 2 жыл бұрын

Interest rates need to rise. Using housing market like a bank is immoral. It isn't fair people pay such high inflation to protect others housing finance

@jimmeh213 2 жыл бұрын

Australians would rather eat cat food than miss a mortgage payment.

@xkimopye 2 жыл бұрын

I pretty much do, my lunch every day is a 90 cent can of tuna. But hey my house is almost payed off in my mid 30s

@ThySilther7 2 жыл бұрын

@@xkimopye peasants

@reductor_ 2 жыл бұрын

The system is broken, we need to not have a system where the rich can actually make money of interest rates rising and the poor can lose from it. While interest on debt seems to make sense, the more I think about it the more it just seems like something to keep poor people from breaking out of their situation. Should someone who has negative money (debt) be charged more money, while someone who has positive money (savings) be making more money? The system is broken it keeps the rich rich and the poor poor.

@Spacemonkeymojo 2 жыл бұрын

You can thank the LNP for all this. Everyone who complains that house prices are too high and voted for the LNP last election should not be allowed to live in this country, they should be shipped off to a country where intelligence is not required.

@reductor_ 2 жыл бұрын

@@Spacemonkeymojo as awful as LNP is and ALP would have improved thing they wouldn't have fixed the issues. It's capitalism and dodgy banking that is the cause, shipping people away for not understanding politics or viewing it like a football team that you follow for life is not good. Instead it is a sign of failing education system, not a fault of the individuals.

@etaokha4164 2 жыл бұрын

With a second baby on the way as a single parent I pinch every penny. The last thing you want is having debt on your name. I had to close my credit card account because I couldn't afford the payments anymore. My daughter doesn't attend activities but does that make me a bad parent? No it doesn't because we all know how much all this things cost especially if your a single parent and everything is on you to pay for and you don't have someone else helping financially. I can't even remember the last time I shopped for myself because you only think of the kids and alot of things I've had to cut back on.

@sustainablyyours61 2 жыл бұрын

Too many Australians over extend themselves when it comes to mortgages and house prices.

@Nox_Bishop 2 жыл бұрын

Would an alternative to RBA interest rates going up is increasing the overall income tax rate above $80K? I feel that might help slow down inflation while assisting low incomes in keeping up with cost of living without squeezing every homeowner around.

@joek292 2 жыл бұрын

The last tranche of LNP tax CUTS are coming through