Bibbs

The main issue I have with eating out at the expensive restruants is having to book so far in advance to make sure i get a table!

Kalenge

Why does it have to be a millstone?

Just because banks will lend people more than they can comfortably afford certainly doesn't mean that it's a good idea. A case of living within your means, but perhaps that goes against the grain of today's "have it all" society.

Zen10

When all houses are unaffordable, and rent is unaffordable, how is it possible to live in one's means?

renth

Interesting piece on the Iron Ore Bubble on the hedge this morning...

it's worth a read just for the appalling comments posted about Gina Reinhard

http://www.zerohedge.com/news/guest-...inehart-bubble

Zen10

Uh-oh - Marc Faber's on the case! Those comments are great...

The kind one has to roll in flour....

Amazulu

This guy may be right (I'll leave that for others to decide) but I've said it before and I'll say it again, that's a nut f**ker website.

bingobob777

Iron ore is her #1 mine, she also owns the peanut butter M&M mine in Western Queensland. That mine is hurting as well as she is eating nearly 40% of its production

bingobob777

She cannae even say Qatar properly.

Zen10

Cut the wages of the poorest.

Bibbs

But neither are.

My rental is about 15% of our houshold income.
Our mortgage will be about 17%.

Zen10

If you need a mortgage you can't afford to buy, only to borrow, so the house is unaffordable. What is affordable is the debt.

Bibbs

So you are saying 'houses are unaffordable', when you mean 'I don't have enough money to pay for a house outright'?

Where in the civilised world *isn't* like that?

And what about rents? How do you rent something outright?

It's affordable, and a damn sight more so than other places. I'd suggest only Canada and the US would be cheaper. But then I'm not sure I wanna live there.

Zen10

The debt is affordable, the asset is not, because you have to take on $1 million of debt to secure a $500k asset, for a random example. If the asset was affordable, like it is in certain parts of North America, then it is possible to save up front and purchase the asset outright. If debt is required, then it is not affordable, obviously. If you want an ice cream but I have to lend you $5 to buy one, then you can't afford it.

Bibbs

So are you complaining that houses can't be bought outright?
When were they ever like that for the average person?

(and what do you mean rent is unaffordable?)

renth

Bibbs, some good news. Your rent and mortgage are about to become even more affordable.

PS lend us a tenner!