eatstatic

For once it looks like Britain may well follow Australias lead. With housing ownership out of reach for the non baby boomers in both countries, it looks like only a major recession will help out the under 35s.

Shame it came to this, I personaly blame the unrealistic interest rates post 9/11, which should only have lasted 2 years max. We are now reaping the harvest of the USA lead credit boom.

Alternatively if the economic balance between the 50s/60s born hippies turned uber capitalist vs indebted rentier class surfs doesnt shift, there will be serious implications for the (mainly) English speaking world.


http://www.theage.com.au/news/nation...405442569.html

Bordy

Your such a glass half full sort of person.

eatstatic

No not really, just one of of those locked out of the fundamental need of a roof over my head. No matter how fast I or my counterparts save house price inflation carries on its remorseless path of outperforming any savings,

Maybe you should walk a mile in the shoes of those who only through an accident of timing of birth can only dream of property ownership.

Vash the Stampede

About two or three months ago, I predicted that we were headed for a recession if the economy didn't improve.

Looks like it could be on the way.

seang

Well at least the kids wont fall into the same mistakes their parents made.

<remembers the UN report this week>

oh sh*t.

Lord Pom Percy

Are you sure your eatstaic , no one has hjjacked your name, the real Eatsatic would only say
that the third world OZ economy is heading for recession not the perfect British economy as well.

BadgeIsBack

Forgetting all your usual anti-Australian patter, I actually have evry sympathy with you. For me though, it was the question not so much of home ownership, (I had a grotty flat) but home ownership in a decent area.

Older people tell you how expensive their home was in 1962. "It was a lot of money in those days". But was it 10 times their income?

eatstatic

I believe the USA, Australia and the UK are all heading towards reccesion. Just look at the house price bubble and the record personal debt in these countries. Debt has to be paid back eventually, when the cheap credit ends (higher interest rates) the party will be well and truly over.

The UK will suffer really badly in particular because of the public overspending by Gordon Brown. We are in for higher taxes, higher interest rates and higher unemployment. Bust always follows boom and by christ what a boom the English speaking world has had the last 10 years.

eatstatic

Very true Badge, baby boomers will always tell you how they struggled. The truth is the usual mortgage then was 3.5x one income not 10x one income or 5x 2 incomes.

youngy73

what were these unrealistic interest rates post 9/11. im 34 and remember grown men in tears when interest rates were at 16% in the uk in the early 90's. 6 or 7% looks pretty good to me. peoples expectations from life are now alot greater than they were in our parents generation. dare i say a hell of a lot more materialistic aswell.

eatstatic

Unrealistic low interest rates of 3/4% for years have lead to a HUGE credit bubble, an average house price of 200K plus, with the average wage at around 25K.

Interest rates only hit 16% for part of one day on Black Wednesday in the early 90s, if that puts things into perspective.

People today however are so mortgaged to the hilt that the Bank of England base rate would only have to hit 7% now for mass repossessions.


I can only assume that you bought a house when they were affordable for you to believe that low interest rates and cheap credit over a long period are a good thing.

youngy73

there should be some cheap houses available soon. maybe ill hang on for my investment property. for the record no form is credit is cheap. work hard and pay cash

Katsmajics other half !!!

i agree with you Vash it could well be just around the corner......My MIL uis selling her house and hse has been told by her estate agent to go into rented for a while..as he reckond interest rates are going to rocket up this year.

As he thinks that the housing market cannot sustain itself at its current rate.

so glad were trying to get out of here, we dnt own our own place and could never imagine doing so looking at the state its in.

We have got a chance to get oursleves our own home in Oz, and more than anything our kids have got the chance too........they reckon if you are not on the property ladder now you will never get on it !!!!!

ozzieeagle

If there is a crash, will rents go down ? I've never heard of that in my 50 years. If not there will be a some serious money being made.


Chinas booming, Japans Booming, Indias Booming.... I think the whole situation is more complicated these days. They were never considered major players in the past.


If anything the only thing a Crash will bring, will be the evolution of a new super power in the Chinese.

OzzieNurse

I am hoping that house prices drop before we get out to Perth. I am already having night mares about afforsding a place to live!