Will Australia become a Capital Exporter?; Mortgage holders have more cash than official figures recognise - money held in offset & redraw not accounted for by ABS
Tweet Topic Started: 6 Sep 2013, 08:49 AM (9,750 Views)
You've tried to pull this one before, and been called on it every time.
From your own link...
'the rate of outright home ownership fell from 45 per cent in 1947 to 32 per cent in 1976, rising to 43 per cent in 1996 before falling again to 35 per cent in 2006'
So by the mid-late 90s it was pretty much at the same level as in 1947... up at 43%.
Then it fell from the late 90s as people started to use offset accounts and redraw.
willy_nilly
6 Sep 2013, 06:17 PM
Late 1990;s according to wiki for the uptake of offset accounts and when did outright ownership rates start to drop?
Lol. Your avoiding the issue of providing any read evidence or data to support your claim. Typical.
Oh and homes are less affordable now. Here is some facts...
"The decline in house purchase affordability is a structural problem created by house prices growing faster than incomes over the last half century. AHURI research finds that between 1960 and 2006 real house prices increased at an average of 2.7 per cent each year compared to 1.9 per cent growth in real incomes — NRV3 Final Report. - See more at: http://www.ahuri.edu.au/themes/housing_affordability#sthash.wdUwwbBz.dpuf
Regardless of how the bank view it, the outright ownership question is a Census question. Those that own says yes and those that have a mortgage say no.
And if you wouldn't answer the question because its none of their fken business Or if you've never filled out a census form at all?
Am I the only one?
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
The fact that more boomers are heading into retirement in debt is the actual issue.
What problem debt? Where do you get these stories from? Boomers will probably sell of a few investment properties and clear their debts no bother.
It is the younger generation that is the worry, they are not building their wealth as quickly as we boomers did.
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.
What problem debt? Where do you get these stories from? Boomers will probably sell of a few investment properties and clear their debts no bother.
It is the younger generation that is the worry, they are not building their wealth as quickly as we boomers did.
From here...
"Some workers have done very well from the super system, but it is increasingly emerging as a case of the haves and have-nots. Simon Kelly, an associate professor at the National Centre for Social and Economic Modelling, a research centre at the University of Canberra, said the average super account balance for males aged 60 to 64 was just $135,000. For females it is less than half that, $62,000. These are well short of the sums needed to fund a comfortable retirement. But the ''average'' is skewed by a minority with very large super accounts. Advertisement Mr Kelly said the median balance for men - the middle figure when you list all the account balances from top to bottom - is $33,000 and for women it is zero. That's right: at least half the women in this age group have absolutely no super. Mr Kelly said the median account for men aged 50-59 was $44,000 and $10,000 for women. - and the old assumption that people would retire debt-free will not hold true for the next generation of retirees. In a 2008 research report for the AMP, the Centre found a growing trend to older generations taking more debt into retirement, with twice as many over 60 paying off a mortgage than 10 years ago.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Then it fell from the late 90s as people started to use offset accounts and redraw.
Priceless!!!
I can see that offset/redraw is going to function as "Shadow's magic pudding" for the foreseeable future:
- decline in outright ownership --> offset/redraw!!
- high Australian household debt levels --> offset/redraw!!
It's brilliant for you: no authoritative source seems to measure it properly, so you can (and no doubt will) claim anything you want about it, in terms of size or effect.
Mind you, the lack of an authoritative source on the topic will cut both ways: you'll have to use it without a scintilla of supporting evidence, as you have above.
It certainly is an intruiging topic that deserves further investigation.
I'm a little unsure of some of the claims being made...
Quote:
By including the pre-payments in the household debt to income ratio, the numerator falls by $200bn, putting the ratio at 127%, some 20ppts lower than the current level. The cost of debt servicing falls to around 8% of disposable income.
While interest rates are very low, that seems an extrordinarily low figure.
My household is smack on the national median earnings, has a mortgage that is tiny by todays standards and is paying some of the lowest interest rates that have existed since I have been alive. But we still pay substantially more than 8% (though it's still pretty cheap overall). With the typical mortgage of today dwarfing mine (including today's average FHBer mortgage), I find it difficult to accept this figure on face value as being the norm.
I think this might be more of a statistical artefact of some sort rather than you typical on-the-ground reality.
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