Golly claimed most homeowners increase their debt as their house increases in value, and that most are still in debt in retirement.
I provided ABS data to prove that older generations carry less debt, and that most homeowners (94%) reduce their mortgage debt to zero by retirement age.
Your waffle about 'absolute debt levels' is irrelevant and doesn't change the fact that most people reduce their own personal mortgage debt levels over their lifetime.
Most people who buy a house today will have less debt in the future, because most people eventually pay off their loans, even as house prices rise.
You're getting yourself all confused between aggregate data and individual outcomes Roddy. You are clearly no analyst.
Oh I see. Not sure why he would claim that.
At any one point in time, a debt or mortgage is lower at t+1, than at t, assuming that the repayment is greater than the debt servicing cost. No different from a hire purchase. Maths 101.
On the flipside, going forward, it is likely that the absolute value of debt will increase across all age groups, including 65+. In fact, compared to the past, the level of debt is likely to be significantly higher across all age groups than it is have ever been.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
it is likely that the absolute value of debt will increase across all age groups, including 65+. In fact, compared to the past, the level of debt is likely to be significantly higher across all age groups than it is have ever been.
Really, show us the facts and number on it roddy. Prove your claims
Really, show us the facts and number on it roddy. Prove your claims
Would you like to be Roddy or 'child of mother cat'? The former would make you more human.
Anyway, some basic facts and figures:
- Ratio of debt to income is higher across income groups (low, mid, high) from 2004-14 - Repayments of debt are higher across income groups (low, mid, high) from 2004-14 - Proportion of debt has increased from 37% to 44% for 65+ age group from 2004-14. - Absolute level of debt has increased by approx 100%+ for those with debt in 65+ age group from 2004-14. - Absolute level of debt has increased by approx 100%+ for those with debt in 30-50 age group from 2004-14. - Absolute level of debt has increased by approx 150%+ for those with debt in 50-65 age group from 2004-14. - Debt to income ratio has increased across all age groups, but by approx 100%+ for those in the 50-65 age group from 2004-14.
- Ratio of debt to income is higher across income groups (low, mid, high) from 2004-14 - Repayments of debt are higher across income groups (low, mid, high) from 2004-14
Income groups? Pure waffle introduced by you roddy.
Terry
15 Sep 2016, 04:43 PM
- Proportion of debt has increased from 37% to 44% for 65+ age group from 2004-14. - Absolute level of debt has increased by approx 100%+ for those with debt in 65+ age group from 2004-14. - Absolute level of debt has increased by approx 100%+ for those with debt in 30-50 age group from 2004-14. - Absolute level of debt has increased by approx 150%+ for those with debt in 50-65 age group from 2004-14. - Debt to income ratio has increased across all age groups, but by approx 100%+ for those in the 50-65 age group from 2004-14.
Roddy, that's just figures not facts. provide a source if you want to be taken seriously.
Would you like to be Roddy or 'child of mother cat'? The former would make you more human.
Anyway, some basic facts and figures:
- Ratio of debt to income is higher across income groups (low, mid, high) from 2004-14 - Repayments of debt are higher across income groups (low, mid, high) from 2004-14 - Proportion of debt has increased from 37% to 44% for 65+ age group from 2004-14. - Absolute level of debt has increased by approx 100%+ for those with debt in 65+ age group from 2004-14. - Absolute level of debt has increased by approx 100%+ for those with debt in 30-50 age group from 2004-14. - Absolute level of debt has increased by approx 150%+ for those with debt in 50-65 age group from 2004-14. - Debt to income ratio has increased across all age groups, but by approx 100%+ for those in the 50-65 age group from 2004-14.
You fundamentally do not understand aggregate statistics.
This is evident when you claim that because aggregate debt to income has increased that the average individual is borrowing more relative to wages. Yet there is plenty of evidence to show this is untrue. What has happened is that as wages have risen more people pass into a wage bracket that will support a mortgage.
I have demonstrated this many times on here . However, you just love a good puritanical rant against the dangers of debt and you imagine that everyone else is behaving really stupidly by piling up with debt and that one day they will be in such trouble that they will sell you their good Sydney home for a fraction of its value.
You do not even realize that this is quite quite insane. Most Australians are very cautious with debt and pay it down very quickly relative to other countries.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Roddy household debt for the over 65's averaged $1,300 in 2004, and went up to $2,800 by 2014. Page 11 Table 2.
You want to talk in absolute terms so let's do it instead of attempting to create excitement where none exists. Save it for the latte set who you'll be sure to impress.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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