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Sydney property owners making $200,000 a year for 'doing nothing'; Bringing home the bacon
Topic Started: 3 Sep 2016, 05:24 AM (19,104 Views)
Terry
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Khaderbhai
16 Sep 2016, 08:12 AM
Ah, I see... you're not familiar with how averages work. Sorry, I assumed you understood the basics.

OK, I'll try to make this simple so you can get your head around it. Let's say there are five retirees...

Retiree A: Zero debt
Retiree B: Zero debt
Retiree C: Zero debt
Retiree D: Zero debt
Retiree E: $100K debt

To calculate the average debt, you divide the total debt ($100K) by the number of retirees (5).

You can use a calculator for this if you want (there's one on Google).

$100K divided by 5 turns out to be $20K. So the average retiree (in this example) has $20K of debt, even though 80% of retirees have zero debt.

The 80% is calculated by dividing the number of employees with no debt (4) by the total number of employees (5), and then you multiply by 100 to convert it into a percentage - i.e. (4/5) * 100 = 80%.
Much better to use the appropriate data sets mother cat. You don't really have the chops to back into data (well you don't actually have any data) armed with the core maths skills of a 12-year old
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Khaderbhai
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Terry
16 Sep 2016, 09:22 AM
Waffle
Whatever you say Roddy.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"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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Rufus
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Terry
16 Sep 2016, 09:22 AM
Much better to use the appropriate data sets mother cat. You don't really have the chops to back into data (well you don't actually have any data) armed with the core maths skills of a 12-year old
Net debt has been trending down for some time.

Those who understand will see why.

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Edited by Rufus, 16 Sep 2016, 09:29 AM.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Terry
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Rufus
16 Sep 2016, 09:29 AM
Net debt has been trending down for some time.

Those who understand will see why.

]
Yes, but debt is actually increasing. The suburbanites are off to the races and hoping for the best.
Edited by Terry, 16 Sep 2016, 09:37 AM.
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Rufus
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Terry
16 Sep 2016, 09:37 AM
Yes, but debt is actually increasing. The suburbanites are off to the races and hoping for the best.
Lending and banking products like mortgage offsets and redraws weren't available in previous times, so comparisons to previous era's is just dumb, but please continue doing it. With your level of bias you really have to. Confirmation is what everyone seeks, not facts, they are boring.
Edited by Rufus, 16 Sep 2016, 09:42 AM.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Khaderbhai
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Rufus
16 Sep 2016, 09:41 AM
Lending and banking products like mortgage offsets and redraws weren't available in previous times, so comparisons to previous era's is just dumb, but please continue doing it. With your level of bias you really have to. Confirmation is what everyone seeks, not facts, they are boring.
You'd think after misinterpreting and miscalling the housing market for the past decade, Roddy might sit down and reassess his bias and narrative.

But no, he just keeps blundering on regardless, convincing himself that it's really "everyone else" who doesn't have a clue. :lol
Edited by Khaderbhai, 16 Sep 2016, 09:54 AM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"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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Rufus
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Khaderbhai
16 Sep 2016, 09:47 AM
You'd think after misinterpreting and miscalling the housing market for the past decade, Roddy might sit down and reassess his bias and narrative.

But no, he just keeps blundering on regardless. :lol
I guess we all just keep repeating our mistakes.

It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.

Mark Twain
Take risks - if you win you will become wealthy, if you lose you will become wise
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Ex BP Golly
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Khaderbhai
16 Sep 2016, 08:12 AM
Ah, I see... you're not familiar with how averages work. Sorry, I assumed you understood the basics.

OK, I'll try to make this simple so you can get your head around it. Let's say there are five retirees...

Retiree A: Zero debt
Retiree B: Zero debt
Retiree C: Zero debt
Retiree D: Zero debt
Retiree E: $100K debt

To calculate the average debt, you divide the total debt ($100K) by the number of retirees (5).

You can use a calculator for this if you want (there's one on Google).

$100K divided by 5 turns out to be $20K. So the average retiree (in this example) has $20K of debt, even though 80% of retirees have zero debt.

The 80% is calculated by dividing the number of employees with no debt (4) by the total number of employees (5), and then you multiply by 100 to convert it into a percentage - i.e. (4/5) * 100 = 80%.
I see.
So each of the 6% of retirees with outstanding debt carry $500,000 in property debt.

That makes sense.

WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Khaderbhai
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Ex BP Golly
16 Sep 2016, 10:39 AM
So each of the 6% of retirees with outstanding debt carry $500,000 in property debt.
No, you still don't get it. They don't all have exactly the same amount of debt.

Some of them might have many millions of dollars of debt - Lowy, Triguboff etc.

Others might just have a few thousand dollars.

You need to read up on averages to understand how it all works. Try this... http://www.skillsyouneed.com/num/averages.html
Edited by Khaderbhai, 16 Sep 2016, 10:50 AM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"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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Terry
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Rufus
16 Sep 2016, 09:41 AM
Lending and banking products like mortgage offsets and redraws weren't available in previous times, so comparisons to previous era's is just dumb, but please continue doing it. With your level of bias you really have to. Confirmation is what everyone seeks, not facts, they are boring.
Mortgage offsets and redraws are ultimately tools that "nudge" the suburbanites to load up on more debt. Therefore, there is no wonder that the suburbanites are off to the races.
Khaderbhai
16 Sep 2016, 09:47 AM
You'd think after misinterpreting and miscalling the housing market for the past decade, Roddy might sit down and reassess his bias and narrative.

But no, he just keeps blundering on regardless, convincing himself that it's really "everyone else" who doesn't have a clue. :lol
You must be thinking of Steve Keen MC. I'm probably the last person you'll find spouting off about house prices.
Edited by Terry, 16 Sep 2016, 11:19 AM.
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