The politics of housing

[roar]

I agree that dogs are awesome. Dog owners not so much.

Too many of them think that it's ok for their dog to misbehave or bother other people just because the dog is cute or they, themselves don't mind the behaviour. Similar to parents of small children, really.

[Lazza]

[think positive]

[think positive]

[What'sinaname]

More rentals are being sold due to a range of issues including:
- Land tax increases
- Increased compliance costs of minimum standard rentals
- increased interest rates.

While this stock is good for first home buyers, rent is increasing and will continue to soar as rental stock dwindles.

[pietillidie]

^Importantly, though, as explained in another thread that's a planning problem, not a capital problem.

[slangman]

One of my nephews purchased his first house with his girlfriend in 2021 just 3 days short of his 21st birthday. It’s not a “dream” home and it needed some cosmetic renovations but they are on their way.k
He had just completed his apprenticeship and she works in admin.
Anyone who thinks housing is unaffordable is either looking at properties that are beyond their means/ requirements or they don’t have a good enough work ethic.
My nephew has an amazing work ethic and regularly works 6 days a week, even picking up work with mates if his employer doesn’t have work on Saturdays. His girlfriend also does some extra Maccas shift on weekends.

So it can be done.

Two 20yo buying a house in 2021….who would’ve thought!!!

too much whinging and poor work ethic by too many people.

[David]

Just curious: did either of them get any financial assistance / loans from their parents (the famous "bank of mum and dad") for the deposit?

[slangman]

[think positive]

Well done slangman. That’s awesome for your son and his GF! Brilliant work ethic.

my daughter bought her house in 2021, but She was 27. Had a decent 20% deposit, paid a little over $550k, bought at just the right time before the climb. it was a 6 years old Simonds home. Only 1 feral neighbour! We bought her security cameras and some kitchen stuff and a second hand couch. hubby did some gardening and security lights, the rest is all her. Her BF lives with her now, his mum bought them a really nice fridge to replace my mums small one. He’s saving for a house now, then they will rent out hers and later, buy 1 together.

No loans of monetary gifts from us at all. Just the first home owners grant. As you said, lived with us while She saved. She had her chores to do. No gap years! She’s still driving the 2011 car we bought her, and he has his nans 1998 car!

A lot of her friends have done the same.

[pietillidie]

^20% is a good deposit these days, so well done.

But generally there's only one way to analyse anyone's story properly, which is to know what the income, spending, savings, health, careers and black/white marks are.

Then, there are guarantors and inferred guarantors that are rarely mentioned. An inferred guarantee comes from indirect signals, including parental assets, family signals and social signals.

Of course, that info is always hidden because not only is is private, its revelation puts lenders at serious legal jeopardy.

Don't get me wrong, I'm not doubting the sincerity and the competence of the young people concerned above, just the transparency of the capital allocation system more broadly. The worst ethical asymmetries tend to come out much later in data showing that health, race, job, social group or whatever thing that shouldn't be considered was clearly considered.

(One of the great mischiefs of our times is information delay, with the belated data release being accompanied by zero accountability because 'it's in the past now').

That said, familial competence also matters greatly, with a good deal of the financial differential coming from social support and awareness. E.g., I'm not at all surprised, TP, that your kids are commercially competent. They would've been raised with that awareness and nous because it's a clear part of your value system. But not all kids have that fortune.

Sometimes, even when all the data including earnings and savings are equal, some kids just lack a confidence and determination to find the right lender and persuade them accordingly because they've never seen that persistence modelled by those around them.

I also think lenders know exactly who will sue them if they don't play ball or step a fraction out of line. That's why I was encouraging David to not let up on that scumbag and shabby company that stole his money. Conveying potency is a stance and posture one needs to take, sadly enough.

But as I say, you can only make a reasoned judgement on that when you see the data and the signals the lender is receiving. Some of the signals won't even be recorded, such as mum or dad accompanying kids to the lender's office or making a call, or someone name dropping the fact that the parents also have an account with the lender, or whatever.

And all of those cues become exaggerated under shortages, whether of housing or capital, and people have to be sorted and prioritised. The smallest signals will inevitably lead to a sorting that won't be made evident in individual stories.

[think positive]

all good points, and i agree.

I also would not have given up in Davids case, but i would have been on the front foot from the get go!!! but then ive had a bad driver try to con me, and 1 tried to con my eldest daughter. it was drummed into them from day 1, take photos of damage to both cars and anything else in the vicinity, licence, any insurance info, and they still have a piece of paper with my details on it to hand out. if someone is aggressive stay in the car, lock the doors, call the cops and me!

My eldest got the loan all on her own, yes we are at the same bank for personal accounts, but we had nothing to do with it and her salary and stable history, work and savings-wise, was easily enough to get the loan she needed. She was smart, She didn't over extend herself, it's not the best house in the street, but its hers and it's enough for now. One day we will indeed help them out but not until they are settled. And now She certainly appreciates how lucky She was to live rent free while She saved. She really is doing amazingly well, shocked me, the kid that booked all her uni classes for the afternoon/evening so she could sleep in is smashing it! Its very obvious how much Her boss thinks of Her talents, and im so damn proud of Her its not funny!!!

Meanwhile junior is saving hard, but im in no hurry for Her to leave!! She is the teacher I always knew She would be, She is literally changing lives, showing kids from the wrong side of the tracks the path to self esteem and confidence. its amazing, the letters and cards She brings home from the kids, they make me cry!! Im blessed and I dont take it for granted!!

cheers!!

[pietillidie]

The UK numbers in black and white, and this will be well underdone given the subtle signals that persuade lenders that I mentioned in an earlier post, and young people living at home rent-free as noted in the article. Even worse, look at the upper bounds of the age bracket!

[stui magpie]

Please correct me if I have this wrong, but my understanding is that the UK is a poor comparison to Australia for home ownership.

In the last half of last century, in Australia, home ownership was the ideal and it was relatively cheap.

In the UK in the same time period, rental was much more common. Public housing was available from local councils, private rental was the exception. Probably a hangover from large parts of England being leveled in WWII

So two very different cultures happening there

[pietillidie]

Del.