bhutocracy |
06-03-2008 11:46 PM |
Quote:
Originally Posted by Chief
(Post 14275220)
I'd agree with you, but I am not sure you are from Sydney. There are people who go out and build massive mansions on a laborers wage and than struggle to pay for it anytime their interest rate goes up. But most people in Sydney live in rather modest housing, in modest areas and still can't afford a mortgage. What's the minimum repayments on a $300k mortgage now days? $600-650 a week? Now try and find a house ANYWHERE in Sydney for $300k, you honestly can't. I am not a fan of people living beyond their means and perhaps you are right to a degree, this will push everything back further into a realistic range with people living realistic lifestyles, including house prices. I do however think a lot of very decent people, living within their means (or trying to) are being caught up in it as well. People with 3 kids, a fibro house and on a regular wage are really starting to struggle in Sydney at least.
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I lived in Sydney for 6 years and I know how insane housing is there, but wages are also incredibly high there at the moment... (avg wage here is $27k and house prices almost as crazy) Yes out of pace with the rise in housing, but once again no one is forcing anyone to get a mortgage. I remember a news article even as far back as ten years ago talking about how you needed two incomes to even think about buying a house in Sydney. It's one of the reasons I bought a house up here. Everyone has options. unfortunately you get a societal groupthink and greed happening and you manage to block out all the the signals you should be listening to when it comes to your lifestyle and consumption patterns.. I understand it, I've done it myself. Actually it's precisely because of how I was living in Sydney that I tried (keyword: tried) to change my ways. The good times never last forever and you have to be responsible and develop some kind of safety net. We're all adults and have to make adult decisions. If that means renting a shit apartment and trying to save money.. instead of building a McMansion and buying the biggest plasma tvs then so be it.
Don't get me wrong.. I feel for people. Even when it's their own fault because it's actually quite hard not to get in that situation most of the time unless you've made past mistakes you can learn from.. and even then you have to actually remember to learn from them.
And it's not like I'm doing everything I possibly could to maximise my situation because I'm also not willing to make certain hard choices..
It's not like I'm without empathy.. it's just I'm not going to put up with whining about it.
The working poor living in a fibro home will mostly get some sympathy. Depends on how much money they waste and on what though. Tradies are making so much money at the moment I can't really consider them part of it even though I know most of them live week to week.
For how many years have people been telling us to buy smaller more fuel efficient cars? How many years have you seen that personal debt graph posted here at gfy?
People will adjust though... it's just that no one likes having things taken away or recieving less than they used to... the majority of people will adjust and be fine providing they actually start taking responsibility for their actions instead of pushing for stupid things like fuel subsidies.
It really is the best thing to happen though, little bit of bitter medicine now will force us to develop solutions now rather than putting them off for another 10 years. Personally I'm livid at the 30B Rudd is giving away that could be going into infrastructure to help begin to cushion us from the impact of higher oil prices. A tax cut that instantly evaporates by increasing inflation instead of.. well pretty much anything useful. Eg. 30B would put free solar panels on the rooves of pretty much every family home in Australia to help give free electricity for the next 15-20 years which would give incalculably greater savings if we had the balls to do it. We could phase it in over the next ten years as we require more generators so it didn't affect the coal industry too much either.
Actually the cheap price of electricity in Australia is pretty much the biggest reason we lag behind in any kind of alternative fuel industry. The price signals aren't large enough to stimulate the development required. Thats why it's important that oil rises to the point that alternatives become cost effective before we actually start physically running out of the stuff. We're also seeing good healthy demand destruction. And hopefully more focus at a government level about things like public transport.
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