Outright home ownership plumments over the past 15 years - The only winners are the banks!; Proportion of households that are outright home owners has fallen from almost 42% in the mid-1990s to 30.9 % today
Tweet Topic Started: 29 Aug 2013, 10:55 AM (4,907 Views)
Maybe, but the realtity is that most of the time the opposite occurs! Ie, prices / equity rise, and aggregate liabilies rise less. At an individual level, over time prices rise, equity increases even more (principle paid off), and liabilities fall.
At in individual level, yes, liabilities fall over time, but in aggregate, liabilities are always on the rise. This is simply the outcome of a monetary system that is based on inflation, total debt must always rise, if it does not you will get deflation.
------------------------------ " ... which is that all-too-familiar dynamic in Irish life where people tell lies, cover them up and create all sorts of collateral damage, sometimes spread out over decades, and never take responsibility." - Alan Glynn
Hi Cat, Only the unintelligent understand this. I have told people how to get a free house. They just look at me blankly i have obtained 3 houses for free basically sorry 4. But you got to think outside the square. Just look at the bell curve of human intelligence, then look at the information source, you can not sell lots of papers to the 1% of people with an iq of 145 or more. The dumb asses will not but it.
Those two links better be good Fruitfly - 'Cause I'm startin' ta get a bit bored with you ... Will let ya know ...
Was only one link it seems - 'N not an especially informative/edifying one ... Lift ya game Fruitfly. (But then I'm a dill - On a scale of 0 ta 200 me IQ is only about 135; 'N me EI is probably about 10 - So what would I know!?! )
Hi Cat, Only the unintelligent understand this. I have told people how to get a free house. They just look at me blankly i have obtained 3 houses for free basically sorry 4. But you got to think outside the square. Just look at the bell curve of human intelligence, then look at the information source, you can not sell lots of papers to the 1% of people with an iq of 145 or more. The dumb asses will not but it.
Please check the link out. It says it all. The smart always win. Peter from Perth :pop:
What is your IQ?
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Maybe, but the realtity is that most of the time the opposite occurs! Ie, prices / equity rise, and aggregate liabilies rise less. At an individual level, over time prices rise, equity increases even more (principle paid off), and liabilities fall.
At in individual level, yes, liabilities fall over time, but in aggregate, liabilities are always on the rise. This is simply the outcome of a monetary system that is based on inflation, total debt must always rise, if it does not you will get deflation.
That's right, but like I said, aggregrate equity rises *more* than aggregate liabilities, almost all the time. The system is geared to work this way - ignore at your financial peril!
Perhaps we're spending the same proportion but today are paying a lower percentage of the principal with those payments (due to relatively higher prices), hence the massive reduction in outright ownership... If that is true they are being extremely misleading by saying it is the same now as then.
Yes and it is household income which includes the income of the increasing amount of adult children that live at home because they can't afford to move out or are saving etc. Also what if people are working more hours now. If im working 12 hours a day when previous had to work 8 and now my wife works well that is more unaffordable and effects quality of life.
Why is this an "incovenient truth"? Even if it is true (and it may well be to some extent, although it's a temporary trend in my view), it just means there will be growing demand for well located rental properties. Probably demand for higher quality properties will also increase over time.
In fact, it looks like the "system" is responding quite well to this increase in demand already? Gen-Y renters should be thankful for NG'd property investors currently buying up properties and ensuring that there is enough supply of the rentals they demand. Otherwise, rents would start going through the roof, and we would start hearing about the "rental affordability" crisis pretty soon.
Do you really want to live in a society of have and have nots? Research shows that countries that have a smaller amount od inequality are the happiest.
I can believe bulls here seem to be advocating a society where ws have an owner and a renter class. That will not be a better place fo live.
Table 3 of ABS Housing Occupancy and Costs 2011-12
PROPORTION OF HOUSEHOLDS WITH CHARACTERISTIC
Percentage of households with one employed person: 29.3% in 1994/5 and 29.2% in 2011/12
Percentage of households with two employed persons: 29.5% in 1994/5 and 31.6% in 2011/12
The percentage of dual income households has increased a little.
So what, if the wife used to work 10 hours a week she now has to work 40 to service the mortgage principal is the same they now need duel full time wages last time when previously it was a lot less.
Do you really want to live in a society of have and have nots?
BP seems ta want'ta ... Positively revels in the thought in fact? - Good Believing Christian lad that he is. 'N Shady 'n Strindberg seem keen as well ... Plus Skamy 'n Mike wouldn't be at all adverse to it I reckon?
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That's right, but like I said, aggregrate equity rises *more* than aggregate liabilities, almost all the time. The system is geared to work this way - ignore at your financial peril!