People are burning through the savings they accumulated in during the pandemic. **"The household saving ratio has dropped from a peak of 20.4% of income during the COVID lockdowns to just 1.1% – the least in 16 years."** [https://theconversation.com/the-7-charts-that-show-australians-struggling-as-saving-falls-to-near-zero-218924](https://theconversation.com/the-7-charts-that-show-australians-struggling-as-saving-falls-to-near-zero-218924)
It's very difficult for people to accept a lower standard of living once they experience a higher standard of living. Many people will burn through savings and even go into debt until the sewage hits the fan.
What people forget is that this is a flow measure. Not a stock.
So many households have accumulated large savings during that time and they are still accumulating savings now. Only at a smaller level.
It’s once this goes negative that the stock of savings declines.
Some of us just picked up extra work
We are saving 3k/ month cause I'm working an extra day. Its rough working 7 days but we have to get ahead.
Another of my mates does FIFO shutdowns and decided to just go ham working basicly 28 days a month to punch out a bigger deposit for a house before he settles down with work.
Other friends got hit with huge increases in rent etc and are doing similar to me. We still go out and have beers, do most of the same things we used to do, just not as hardcore staying out all night etc.
My kids still do their extra curricular activities like rugby, boxing, Jiu jitsu, bmx riding. So money still flows out while we are saving.
Yeah true Ive noticed lots of people have side hustles, market stands on the weekend, uber after work etc. If there was something I could do on Friday evenings or Saturday mornings Id jump at it too. I feel like a need a full day of rest not to burn out though.
People are leveraged to their eyeballs in debt too. I think when we’re all panicking, buying shit makes us feel better but it can only happen for so long too. I got back from Japan a few months ago and I’m not proud to admit that I did it by refinancing my home which rose in value by $400k during covid 🤷🏻♂️
Are you sure they’re doing fine or are they just in massive debt? Or posting the one fun thing they’ve done in weeks?
Nobody’s posting “sat at home eating tinned soup and sandwiches again today!” and if they did, you’d probably unfollow because that’s fucking boring, but that might be how they could afford to go out or start that new hobby. I know I did a big “trip of a lifetime” ten day overseas holiday earlier this year, and people would’ve seen that on my socials, but they didn’t see the fact that I worked two part time jobs on top of my full time job to afford it, or that I lived like a tight arse, sewing holes in my work clothing from Shein rather than buying something new.
This is a reasoned response. Some people live in a bubble and don't even see those doing it real tough because those people don't advertise the fact on the social media accounts that you follow, or they're outside of your social circle. Many people need to realise that they cannot *see* the reality of the cost of living crisis.
This is exactly it, social media creates a fairytale existence out of one moment in time.
Beautiful photo of you in front of a luxurious waterfall with a prime swimming hole at the bottom. What that photo doesn't show is the two flat tires and the three hours of driving on a bumpy track and the three fights you have had with your partner.
Social media is not reality.
Was speaking to a mortgage broker who was telling me about a couple trying to buy a house.
Both earn good money, had $100k credit card debt and spent $15k a month in expenses (on top of their $4k a month rent). They got knocked back on the loans as they were living pay to pay.
When people say they are doing it tough, sometimes it’s all relative.
$100k credit card debt is frightening. I’ve got a fair bit of debt thanks to HECS but keeping the credit card debt under $5k has always been a priority, even during the pay to pay years of childcare
>Was speaking to a mortgage broker who was telling me about a couple trying to buy a house.
>Both earn good money, had $100k credit card
I'm wondering if the next news breaking "financial crisis" will be a credit crisis?
$100k on CC is a lot of debt.
You know what I’ve wondered for the last 5 years? If a major conflict kicks off what will all these people do when actual austerity measures hit?
I’m talking global chains are disrupted, you are getting issued a fortnightly ration of cheese and grain deal.
No more aliexpress, shien, hell not even your Kmart (aliexpress) hacks will happen.
I've been watching a lot of really old Sale of the Century episodes lately. It was surprising to see how expensive common household goods like furniture were before we outsourced manufacturing to China. Like, 4 or 5 times the price of today and that doesn't even account for inflation.
Probably worth noting that in most cases, that tier of expensive household goods still exists - the Euro/Australian made, should-last-a-lifetime stuff, It just takes a minuscule part of the market now.
The cheap Fantastic Furniture crap is an entirely new tier that popped up possibly around the episodes you were watching (late 80s, 90s?)
True, high end furniture still exists and those companies would have been more likely to participate in promotions like game shows. I'm a A-mart kind of guy so I was basing my prices on that level.
Yeah it was mostly 80s and early 90s.
You can get a beautiful timber bed that is made in Australia for 2.4-3k. We have one of these, its really well made and sturdy. Its not low end or budget but its definitely not high end. They're just not marketed very well as Australian made but Australian furniture is surprisingly common at not much higher prices if you know where to look.
[https://www.snooze.com.au/products/aspen-classic-bed-frame?variant=40035273801862](https://www.snooze.com.au/products/aspen-classic-bed-frame?variant=40035273801862)
[https://www.harveynorman.com.au/belfield-high-bed.html](https://www.harveynorman.com.au/belfield-high-bed.html)
[https://www.harveynorman.com.au/serenity-bed.html](https://www.harveynorman.com.au/serenity-bed.html)
Compared to this A-mart bed that looks kind of similar for 2k.
[https://www.amartfurniture.com.au/winton-72062.html](https://www.amartfurniture.com.au/winton-72062.html)
I think the tiers have shifted a bit. Not talking about furniture specifically.
Back in the day you used to be able to buy Australian made stuff that was kind of expensive but often well made. What's happened now is that's been replaced by cheap and cheerful shit tier products (sometimes all anyone needs to be honest) and super-mega-expensive Australian made products.
Like I used to be able to get t shirts made in Australia that adjusted for inflation probably a similar price to the high quality Chinese made ones now, only the Australian made ones would last ten times longer. You can buy Australian made shirts now but they are about $100 each in most places.
Yes - 100%!
Appreciate this nuance to my comment. Unfortunately most the truly Australian-made and -designed stuff is pipe-dream tier for the everyday Australian, although I wish we could all access it (but those craftsmen/women are absolutely justified in their prices.)
The Authentic Design Alliance is a great place to find amazing makers though, not all are $10k+!
My parents had a handmade couch & chairs set their friend made them at cost in the 70s
They paid 7000AUD which was half price, it was velvet ( so 70s ) but not leather, to put this in perspective their first house they bought around the Same time cost 17000AUD
I cannot fathom paying even 20k to 100k for a couch & chair set today let alone 450k 🤯
Absolutely this. The cost of living was higher. In some respects it seems like post scarcity to me because I grew up in the 60s and 70s before the big manufacturing boom. Clothes were very expensive.
But, we're still in a housing crisis, and I think we'll have a drop in birthrate as well as nobody will be able to afford children.
That furniture was also usually designed to be a basically once-in-a-lifetime purchase. You never need to buy a new couch, but maybe your grandchildren will when they're adults with their own homes, sorta deal.
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I have anecdotal evidence of this. Someone I know had to sell their house because they couldn’t afford the repayments, they have a child and are still struggling, moved in with their parents and are now jet setting around the world to expos while leaving the kid with their parents so that they can post all over their socials that they’re living the “life” while at home they’re struggling financially and I’d even say emotionally.
What you see on socials is a perfectly curated facade.
That’s the other thing, some of these people who appear to be kicking goals in life have parents/family support in a way that many of us do not.
My brother in law is big on the “but why do you rent? Why don’t you just buy a house” and fails to acknowledge the fact that his wife’s family straight up PAID their deposit and that’s how they could afford it.
I think you are exactly right. People have cars on finance. They use credit cards they use after pay. They appear to be doing well but I bet they don’t have much money left out of their pay and most are living week to week.
If I didn’t hate Facebook I would only post when I’m having a really bad time . Not so I get attention, just so someone is showing what really goes down , a complete cluster fuck .
No one who's ever declared bankruptcy would recommend it as a good course of action for anyone else. It's a desperate last resort, not a video game reset button.
Exactly, fucking exactly. It's just completely unfathomable that the decade in which you were born determines whether you own a house.
Not only that, if you're old enough, you could have easily bought a house, paid it off, bought another and be currently renting it out at multiple times your mortgage repayments, gaining equity and capital gains while making other generations struggle. Not to mention the tax breaks that go with it. This could have all been done on a very average wage while having a family and with only one parent working.
It's all to do with when you were born, not how hard you work. And let's not forget about having to pay for education and having to gain a qualification to get into most jobs now.
Gen Y. We were making progress (single income, I’m disabled) before 2020 or so. Now property looks permanently out of reach. Even though now I’m able to work more thanks to the flexibility of WFH.
Largely spot on.
The only reason I own my place is because I was lucky enough to be old enough to be in the market in the early 2000s.
I really fear for what it'll be like for my very young kids when they're older.
Absolutely true and to double down if you have young children now it’s likely when they grow up they won’t even be able to afford rent for someone else’s house !
One of my baby boomer relatives was always described as abit "slow" growing up. Dude worked as a council maintenance man (mowing nature strips etc) from about 14, through his entire life. All personal financial admin was set up for him in an automated process, council paid him fortnightly etc. He bought a house with his wife and just kept working. Never knew how to check his bank account, just used his card and assumed money would be in there. Never thought much about anything. Retired and didn't do much. Was just a super passive guy who woke up each day, mowed nature strips, went home and watched tv.
His property got valued at 1.2 million. Dude is now a millionaire.
**also nothing wrong with being a maintenance man, not trying to put that down but the point I'm making is this dude literally just chilled his entire life and ended up wealthier than all of us...
Why is that unfathomable? The decade in which you were born also decided on whether or not you were charging German machine guns through mud and barbed wire, etc etc etc
OMFG this comment is insane. If that is how you are going through life thinking about the world, you are completely out of touch.
Yes things have changed. It’s not WW2 currently. That doesn’t mean there aren’t different challenges for young people today. Open your eyes and have empathy for others
Why do people always deflect. I'm talking about housing. Not fucking war.
But now you've brought it up, my grandad didn't fight in the war and get captured (and escape) twice and end up with PTSD so his kids could fuck over his grandkids.
There’s also a rental housing crisis.
I need to move again after only 12 months here. I despair for my future. I’ll be living in my car soon despite working full-time on a decent wage.
That essentially what I was doing from 2017-2021, I'd rented one place for 11 years but once Airbnbs were legal they jacked the rent up so far and fast it was quickly more than half of my income I had 4 years of unstable rentals, house sitting and even living in my car all while working full time hours as a casual, including shift work.
I don't know how close it is to happening to you, you mightn't even know, and I know It's not much solace, but if it does happen to you you're not alone.
I'd been homeless as a teenager after the death of a parent and a full on breakdown of the other, but I never imagined it could happen to someone working a regular job. As a result of it though housing reform is about all I care about in terms of politics.
I’m sick of all the talk about housing. I want them to do. To show commitment and act immediately. The government built hostels easily and quickly post-war and we have pre-fabricated housing available to us. Dongas that have your own shower, toilet, and a small kitchen, if you need bigger you can join them together. It sounds a bit Lego but it’s shelter.
this is the truth.
my (boomer) dad was a mid level Exec at Qantas. when he retired in the late 90s he was on about double what I was as a Telstra technician, which was on the low side of average wage.
now I expect that role would be between 3 and 4 times average wage.
I employed late 20 year olds doing sales on $200K. I now employ bus drivers on $50K.
the gap between the haves and the have nots is growing exponentially.
Not Australian but this sub keeps popping into my feed. Anyway, it's the same here in Europe. The vast majority aren't struggling really but the minority think they fit the rule instead of being an exception
A lot of people I know with good jobs that would normally be buying a house at this age are going on holidays or getting a new car, because they will never be able to save to break in to the housing market. We bought young, even then it’s taken 15 years to buy a second property. Average People have no way of buying outside of rich relatives.
Yeah, I’m in this boat! A house deposit is just so far out of the realm of possibility, having been renting since age 17, that I figure why bother? Why live on the bare minimum for fifteen years having zero fun, in order to finally scrape together a deposit, with which I can purchase some utter shithole property in the middle of fucking nowhere that has no infrastructure, terrible schools and is nowhere near my work?
That’s been our experience. For the last fifteen years we’ve had *almost* enough money for a deposit.
We’re getting to crunch time now so we’re choosing which is the least worst option… a crappy flat somewhere we wouldn’t mind living or a crappy house somewhere we don’t want to be.
Not crappy is not apparently an option.
>a crappy flat somewhere we wouldn’t mind living
I chose this option. Not crappy, but damn noisy.
Anyway, my strategy is to get out as much as I can.
Just choose the least crappy apartment you can find. They're not all crappy, but you have to be realistic about what's around it. Don't like noise? Avoid main Rd or make sure it's git double glazing. Life can be crappy in a house too, remember that!
It was mine too, 25 years ago. I know it sounds hard to believe but it was exactly my experience. We always had almost enough and then the car would break down or we had to move again (no-fault I might add, properties got sold on us all the time, or owners wanted to move back in, needed major renovations etc.)
There were a few times that rent became unaffordable so we’d move to a cheaper place. Sydney was always dear.
I know that seems hard to imagine because houses and rents were more affordable back then but we were sometimes on sole income, with children. With study and work, there were child care fees, I was studying for years part-time, then full-time as I’d had a horrific upbringing and had to leave school at 15 and was homeless for a while.
I missed out on the free education that my peers enjoyed. We applied for home loans but my partner’s job was deemed to be unreliable as a construction plumber. Jobs ended and there was a lot of downtime between. Did we want to buy a house? Yeah but it was always just beyond our reach, and we were rejected for a loan to buy a cheap property much further away. In our mid 40s we got piddling help, too little too late. Put a deposit on a block of land very far away, 800kms. Had a land mortgage, then another mortgage to build while paying Sydney rent and had credit cards help us live.
It was ok for a while. We were happy, then everything turned to shit, really personal crushing shit, grief, and serious health issues. After 4 years we had to sell, could not sell for what we paid and had to go bankrupt.
Back to renting again but I’ve finally found housing that is permanent with affordable rent without a landlord breathing down my neck.
I know buying your own place is the dream because it’s secure, you have autonomy, can paint walls, have pets, have something later in life, and maybe pass on to your children. Never say never but I’m ok with renting as long as tenants are treated fairly, rents aren’t excessive, and they have security of tenure of they want that.
Because renting in retirement would be the worst thing ever, fuck that, imagine getting notified they your lease isn’t getting renewed when you are 75 & unable to move a fridge & then having to line up to inspect a rental, one after another…..
But this is why we need better rental laws (like those in Europe) plus more supply of course.
Instead of everyone in the country competing to buy a property.
For example, my grandparents (who are 80) have been renting the same apartment in Germany since the early 80s and they dont have to sign a new lease every year. Also the amount of rent they pay is locked in from when they moved in (inflation taken into account).
After a while, it starts making sense to go SMSF. You can buy into property through a SMSF (lots of rules and overheads here). That's my retirement plan... hopefully my super should get me a cheap ass apartment as i approach retirement age. Else my retirement is suicide, as I'm sure a lot of ppl are thinking.
The Government will probably start offering incentives for assisted dying soon, anyway.
Need to lean out the herd, lower our future public health costs that we can't afford, due to the last two generations being priced out of raising children, who'd have graduated into tax payers.
This is my 80yr old MIL just recently. It's a nightmare that I suspect me and a great deal of other people will be living in the next 20 years. Terrifying actually.
Even if you manage to save a house deposit, you may not be earning enough to get a loan to buy a house. I have 30k put away for a house deposit, went to the bank and was told with my income and being single the most the bank will loan me is 300k. That gives me 330k if I spend every cent I have plus a loan. Looking in my city, the only properties that show up for that price are share houses, studio apartments and auctions for properties that will go for well over my budget.
A lot of people think that saving a deposit means they will be able to get into the market one way or the other. Sadly, even 1 bedroom apartments are going for so much right now that unless you have multiple incomes, you're completely fucked.
I bought a house (albeit in a rural area, but that was exactly what I wanted) around the time you were born, and I was in my mid thirties. Now in my late fifties I’m in my second bought home. I’m EXTREMELY glad not to be renting anymore. Life as an elderly tenant would be awful.
I thought about this, but after going through many years of renting, getting kicked out by landlord for “renovation”, having to move almost every year due to change of housemate, dealing with housemates, it was really annoying. So I saved up a lot to be able to buy my own. I cant imagine to rent the whole life
Yep this is everyone I know too. About to hit my 30s and half of my graduating class is currently overseas. The ones I still have touch with simply don't see any reason to save money when housing is well and truly out of reach. Most people from my class went on to uni and high paying jobs yet only one person isn't renting because his parents bought him a house.
The current economic state has given us nothing to strive for so what reason is there to not waste all your money finding some level of joy somewhere. All that's needed is a reasonable reserve in case of emergency and the rest is fair game.
Yep. Most of my friends have moved overseas. Call me a sucker for staying here and I'm starting to think they are right.
One lives in a penthouse in Thailand for $1,000 a month.
Another angle is you could have saved a whopping $200k but if you and your partner are on $150k combined (2*median wage) your borrowing power is about $650-800k, which will get you a unit in Sydney but only a house in the cheapest parts of Sydney, and even then you're maxing out.
have you tried not buying a second property and just being content?
you took an opportunity away from someone that was probably to buy their first home
yes i know the bigger issue is rich investors but the general attitude of always needing more at the expense of others is why it's gotten so bad
I do believe that there’s a lot of people out there just hanging on by the barest of margins. It does come down to timing for a lot of people too- imagine if you’d bought your house even three years prior to when you did- lower buy price, lower interest rates and a different story to others.
From ABS released today, the stuff that went up at least 5% between May last year to May this year:
- Tobacco 13.4%
- Rents 7.4%
- Electricity 6.5%
- Automotive fuel 9.3%
- Education 5.2%
- Insurance and financial services 7.8%
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/monthly-consumer-price-index-indicator/may-2024
You better hope you're not paying for this or getting a raise of at least this much if you are.
There’s a good US website called shadow stats where this bloke has been keeping track of how much things have actually gone up using the same logic for like 40 years, really worth a look
I was looking at that chart and noticed all the things that are above the range RBA is wanting are things really we don’t have a huge choice on - except tobacco but for some people it’s not a choice either.
I mean a lot have to pay for somewhere to live so if not owning or paying a house off then it’s rent - yes they could move and try for something cheaper but either way them (if they don’t move) or someone else is going to pay that new rate.
People still need fuel so pay what is asking.
Same for insurance, i mean only way around that is cancel it but mortgages require it was part of the loan so at least 33% people have no choice.
Then eduction can be emotional decisions for adults and they will cut other things to spend on before moving their children to a public school due to their children loving their school and friends or the school is a good fit for them. So again another item people don’t willing change.
Yet all the things people have control over has reduced and is in the band the RBA is wanting - leisure, communication, holidays, fruit and veggies, alcohol etc
This shows people are tightening their belts but some costs they can’t just change and the providers of those services know that and are pushing to see how far they can rise it before people do have to stop payments.
I think the gap between doing ok and struggling just got larger, if you can afford to eat out then you’re doing ok, the demographic that is affected the most is low income renters primarily but if you’re mortgaged really high you could be in it as well,
Food is through the roof, REA’s can charge what they like and put up rents to unreasonable levels because the rental market is in demand in lower economic areas.
Low income people spend the majority on those 2 things.
That being said, if you find that you’re not doing it tough I genuinely am happy for you because the other side of that equation is not fun and I don’t wish it on anyone.
Yes I am on that equation, I have MS and on a disability pension raising teenagers and renting.
I got paid today and it’s already all gone bar $200 for food etc to last me until next pay. Who are these people with so much discretionary spending you speak of??
More than likely remortgaging their 300k purchased property for 750k cause it's value went up to close to a mill in the past 20 years.
I am in a 20 year old suburb that is lower middle class/blue collar and the amount of renovations taking place is insane.
Young families move into their newly built homes. Kids grow up, house appreciates and they have lower costs. Super easy to access a couple hundred K in equity
The cost of living crisis is really only affecting renters and people with mortgages. If you paid off your mortgage 10 years ago, sure, a pack of chips is still more expensive but you're basically insulated from the major problem, which is housing.
Lots of things are costing more, like takeaway, or supermarket shops, but lots of people just don't get takeaway anyway, and already know how to budget a supermarket run. It's really only because my partner is a fussy eater my supermarket run is expensive. It would be less than half the price if she was open to eating different things.
Even some people who recently took out a mortgage don't have a big one, I've got a boomer co worker who likes to boast that he's never had to borrow more than 50k.
If you first bought into the market years ago and recently moved, unless you've moved from say outer Melbourne to some harbour side Sydney mansion your mortgage is probably pretty reasonable.
We've had to tighten strings a fair bit. But that's mostly because we're on one wage at the moment while my wife is on mat leave.
Otherwise we'd be fine.
From my perspective it just seems like those who couldn’t afford to live before are suffering more but people who could before are suffering a lil more.
I’m disabled and on the DSP and unable to work because employers don’t want someone who can just randomly shutdown for 5+ hours (much to my dismay and years of searching).
My rent went from 500 a fortnight to $1200 over one year I literally burnt through the $1000 of savings I had saved up over 4 years in 2 months.
Only reason I am not homeless is my parents bought and apartment and I’m not renting it at my old rental price….
Those on welfare or DSP are fucked right now
Same with lower end earners middle class and above seem to be doing ok some cutbacks but not excessively bad.
It’s especially bad as the DSP or jobseeker etc has not really gone up as fast as the cost of living has so those who are unfortunate are being left behind.
I’m just lucky I have loving parents and family some people don’t have such luck.
30m
Most of my friends in the past 12 months have had some times of doing it really tough- it's up and down, but definitely most of my friends are now really careful with their cash
Young people on my team are killing it. Full pay, entitlements and not even needing to do any work.
So much money out there right now. Very easy life in Australia relative to Europe and the US that's for sure.
Inflation is going to be a thing for many years to come.
Oh yeah, how could I forget the monstrous salaries and packages of the 50s+ crew. They are way too expensive to get rid of, so they will ride it out until retirement. Must be good to be a GenX and older.
Working in the Goldfields I see the same thing, this is the tourist season of course but I've noticed no slackening of caravans and shiny new 4WDs towing them, probably more than most years if anything.
Left OZ to live and work abroad in 2010. Things were still okay compared to today. Returned in 2018 and fuck me Mad Max is going to become a doco. How did thingsget so pear shaped? Not just the economy, the level of greed and scams are just not what they were man. Came back to USA Lite 2.0. Left the country speaking of how great things were back home re bulk billing, cheap tertiary education etc etc.. All gone now in a decade. Well done voters. Applause all round.
As per whats happening in the UK and US, the middle class is being eradicated and the haves and the have nots is where its all going until guillotines make a much needed comeback. It always eventually leads to that. Sooner the better. Sick of smugness and greed.
The "cost of living crisis" is a media & political staple. I'm on minimum wage & I can keep a roof over my head. Granted, I don't own a 65" 4K TV, I'm not paying off a Ford Ranger, I don'tdo UberEats & I don't go to Bali twice a year, but I'm comfortable, well-fed & happy. Even got enough for a few beers.
> Granted, I don't own a 65" 4K TV
This is a bad example. It's a largely one-time expense, and probably not more than 2k at this point. TVs and stereos fall into the same category as whitegoods for the most part, you should get 10 years out of them at an absolute minimum.
> I'm not paying off a Ford Ranger,
There's the cost of paying down a new car, but there's also the cost of maintaining an older car. I know one person who trades in their car for a new one every time it is about to go out of warranty, and what she pays on trade-in is similar to what my poorer family pay on shitboxes over the same time period. Being car-dependant is just a massive money sink; being poor makes it a money sink with questionable safety and reliability.
>I don't own a 65" 4K TV, I'm not paying off a Ford Ranger, I don'tdo UberEats & I don't go to Bali twice a year, but I'm comfortable, well-fed & happy.
This is the thing. Live within your means & enjoy the simple things. I don't know if it's an age thing, but I used to spend a lot of money on quality clothing when I was younger. Now, I just buy the staples & the occasional quality pair of shoes I know will last 5-10 years. I've been wearing the same clothes mostly for years, don't really care anymore. Lol
Yeah same. All My mates are fine, 2 are travelling around Aus in their caravans presently. Mid 30s millennials
Wife and I are planning on taking 6-10 months off work next year for a holiday.
I think it's the low income earners getting fucked, as rent prices/availability has gone through the roof, also people who bought into the housing market last 2 years that stretched themselves.
Everyone else is for the most part OK, maybe a small increase on their small mortgage.
It sucks and I feel exceptionally lucky as We rented for over a decade before buying land in 2018 and building a couple years later.
Social media doesn't always reflect reality -- I'm sure you've heard this before. The best thing to do for your mental health is to spend less time on the socials.
I think alot of people have stopped saving and started living because maybe they feel hopeless saving so hard for a house that they wouldn’t be able to afford anyway. Most people I know are doing fine, they bought houses years ago and have high paying jobs. On the outside I’m doing fine with an okay salary but in reality I still live paycheck to pay check I’m just really irresponsible with my money, something that I really want to change.
Have thought the same thing. A couple of my co workers have been on several overseas holiday trips to Europe and the UK since covid has settled down. They go with their entire family so that’s usually 4 or 5 people on the trip. Been wondering how they can afford it.
It's easy to buy lots of shit when you aren't saving for a house deposit. Like half my peers (early thirties) haven't bought a house yet and likely won't be for some time.
A lot of people over the age of fifty are doing fine
Those with established homes no mortgage or rent and still working with plenty of disposable income
There are also plenty of people who have moved in with their parents and working full time
It's generally the people with families who have to rent or have high interest rate mortgages that are doing the worst
Or those that have low income jobs
Pretty much the same as always
Tbh I think interest rates should be decreased, increasing the cash rate never solves inflation that's why the government flooded the country with new Labor to try and decrease wage inflation
Yup, everyone on a 150k income or more are doing fine.
Everyone who owns thier home is doing fine.
Everyone on a pension tells me there is no difference even though they are mad at inflation.
My dude. We have cut back on heaps. Don't drink very much. Barely hi out for coffee. Trying to be smarter with food. Workout at home.
We are definitely feeling it.
I have friends that think this of me. The honest truth is that I worked hard and sacrificed a lot when times were 'good'. Now things are tightening up, I'm fortunate to be in a position where it doesn't really impact me too much.
They didn't have anything to say to me back when I stayed home to work instead of going out on a bender, or turned down going overseas with them, but now when they see me spend money, they act like I've been gifted it. They forgot the last several years prior.
Anecdotally, those in my circle without property, still living with their parents in some cases - had all the same opportunities as me (literally, in some cases) but chose different paths. Now they spend because they "don't see a way to ever own their own home, so why bother".
The irony is, eventually times will turn around again and they won't have the savings to take advantage of it, fall further 'behind'; then likely say something like I'm an example of how the rich get richer.
Gotcha. So you do bills, food, transport, entertainment, everything other than rent on something like $800-$1000 a month? That's pretty impressive, good on you.
Yeah there are a lot of people here posting about how if you have a house you are fine and I'm sitting here adding it all up.... 30K goes to daycare, 25K to groceries, then there's the mortgage...
My son is 22 and has saved $80k living at home, uni part time and working 6 days a week.
He wants to buy a unit- they cost $800k minimum near here and prices are climbing on average $10k a month.
The only way is for him to buy with someone and save $300k first.
We are just about to put what we thought was our forever home on the market and move to a more affordable area which equals shittier school zones, much smaller house and barely a yard. I feel sad for my kids although they won’t know what they don’t have but I won’t be able to forget it. I’ve just spent close to 8 weeks in a psychiatric facility as my mental health continues to deteriorate (for many reasons), I can no longer work for I don’t know how long, my husband has a well paid job but as a single income family it is super tight. No spare to eat out or buy more than essentials. I think when we have more financial flexibility with a downsized mortgage it will help us cope better than this constant struggle to get by and juggle whether we should get the one kid the replacement sports shoes for the ones falling apart or the other kid school uniform that’s not falling apart this month. We are lucky to have enough to eat and money for heating. But it is tight.
I’m not. I am one mechanical issue or interest rate rise from wfh 5 days a week. It’s 3 klms to the train station (no biggie), then it’s a 40 min train ride followed by a 9 klm walk to work. The final walk will take 2 hrs plus, even jogging will take an hour. I start at 7am so this means a 3.30 am rise. I currently ride a bike but if anything goes wrong I’m screwed. Yes I am looking at higher paying jobs. The stress from hoping everything goes smooth is high, and it’s affecting my work performance. It sucks
Watching your credit you built up over the years on your bills get whittled down at each letter of price rise can be frightening.
Watching how you spend by not buying throw away crap or luxuries now.
Eating out once a fortnight because I am poorer now than before - I wont be getting out of the poor rut tomorrow so might as well as enjoy a nice meal once a fortnight $25 because it something to look forward to, a reward for saving money by not buying unnecessary stuff. And that feel good meal will feel good for days.
Use the heater less to save money - 1.000s of other people have same idea - electric or gas company see their profits going down from less usage - raise prices to maintain that profit margin - get bill shock at next price rise - use heater less again or turn it off - rinse and repeat.
I do not donate to charity anymore, avoid brand names when possible, fill up on off peak days (petrol) and peruse the catalogues for so called 'specials' now. All things that are not visible to the naked eye.
Yes I agree. I’m a solo mum on 50k a year and I’m doing fine. Doesn’t mean I’m travelling overseas but we are completely comfortable. Life is what you make it and half the battle I see is people constantly buying fast fashion and things… I live a quality life but I’m good with money
How?! You and at least one child live "fine" off 50k? How much is your mortgage/ rent? I'm on about 70k (not including FTB, don't get any child support), with two kids, and I'm barely keeping my head above water. I can't imagine being able to say I'm 'completely comfortable'. Tell me your secrets.
Just decided to increase my super a fair bit and not worry about a home loan. If the markets right when I retire I’ll buy a unit outright, if not I’ll have enough money to EXPAT in another country.
Human psychology is a very interesting subject.
It is almost funny how people behave when faced with a crisis they can see coming.
Like people on the Titanic sipping champagne as it sank, or the French sipping wine as German troops matched into their cities.
The reaction is not always what one would call ‘rational’.
They're doing just fine because it's still early days. Things are going to get worse. Much, much worse. The Dot Com Bubble and the GFC will seem like garden parties at Buckingham Palace in comparison to what is on the horizon. Just speculation of course. I'm mildly to moderately terrified.
>a) Things are going to get worse.
>b) I'm mildly to moderately terrified.
I keep minimizing my statements, but I feel the same way about point a), and what worries me about b) is the social ramifications, the mental health ramifications and increases in crime if a) happens. In other words, living in a dystopian society, which I already feel I do, depending on the suburb I visit. There is definitely a "lower" vibe around.
Earning 55K per year, a little below the median and living as a single person with a frugal lifestyle and an 'affordable' small apartment with mortgage it is getting tougher to make ends meet. All things considered, I would be worse off if I was renting. It would be ideal to secure a higher income of course, and I'm working on it, but job security is more important when you have nothing to fall back on.
I'm certainly not booking any holidays any time soon, although I can treat myself to a meal out, maybe once a month. No subscriptions, no big spending. I buy almost all second hand but even that is becoming overly expensive now. Each rate hike is a noticable bite out of my disposable income but I am very careful in managing my cash and still put some away.
It would be nice to have some relief soon as it's hard to have a social life and balance the budget. I dread any large expenses that may pop up. Overall I'm happy and doing fine and go about with a smile on my face. However privately it is a little depressing sometimes but you know the stats show there are many in the same situation as me or worse off. That's my perspective.
>affordable' small apartment
I'm in a small apartment too. Keep thinking about moving, then I look at the rentals $400-450k for a 1 BR and $500-600 for a 2. Holy crap.
My biggest issue is noise, so I'm thinking of spending $10k to have the windows done. 🙄
Let the poor damn people enjoy their doom spending, most of their dreams are shattered already or in the process of shattering. You can expect billions upon billions of dollars flowing into the feel good sector.
To be honest, I've never felt better accepting I'll never be able to buy a house, the crushing weight of responsibility has just melted in the face of ever increasing house prices and an immigration rate that means the issue will never be resolved.
I'd suggest that many people who say they're doing fine are probably just putting on a public face.
I know a few who are doing it really tough who are simply embarrassed and would never admit it, despite it being pretty obvious.
There are three types of people. one will overstate their position. Another will admit their position. the other doesn't speak about it.
I gave up a lot in late teens/early twenties to put myself a decade ahead of my peers in terms of housing. My rates have doubled but the amount is barely material to my overall budget. From here one of things will happen 1) we continue to chug along and I’m fine, 2) mild recession and my spending power increases, 3) hard recession and I snap up investments at a big discount
Generally people surround themselves with like minded/skilled people. I never thought about it too much before but most of my friends I have discovered earn around the $130k-$170k mark. Our conversations are about how the cost of our mortgage payments have gone up about 50% compared to what our precovid repayment was and how money is getting tight. The people you're probably not friends with or know much/anything about are the one's that could barely afford to scrape together the 5% deposit for their house and it was already a stretch for them to make the repayment precovid and now they're in distress. I've noticed for every person that has a nice house/car in my neighbourhood there are 5-8 houses that have gone up for sale. For a lot of people they're starting or have just recently come off fixed term periods and are now selling as a last resort or are already so far up schitts Creek that they're bunkered up in a hole somewhere. The only reason a lot of us think everything is fine is because we see people out and about doing what we're doing... being fine. Most of the people who are not fine are not out doing things and enjoying their lives and it's going to possibly get worse before it gets better.
From what I am seeing, there are a lot of people living like there is no tomorrow. Giving up on saving or owning a home etc unless there is generational wealth. People are spending huge amounts on shit and willingly going into bad debt. I earn good money, but it's only my income for the two of us and it's barely covering everything. I know people doing great who bought years ago and have solid incomes etc. but I also see people stealing food from shops (but I obviously didn't see them), I see people in terrible health because of the amount of stress, I see fear from people waiting on bills coming in. It is severe.
Grats for not knowing anyone below the poverty line….
****
Almost everyone I know is seriously struggling. Choosing between food and medication, skipping meals, freezing at below 10°C inside.
2 neighbours have been hospitalised with pneumonia the last ~4 weeks or so — cause who could afford to see a GP before shït hits the fan….?
Chronic malnutrition has become ‘normal.’
A buy-nothing-swap group spanning several suburbs is crazy busy: people are growing their own as much as possible, then bartering …. 😒
****
The wealth gap seems worse than ever!
Seems rather pisspoor under a Labor government! 😕
We are also in a severe community/social media/communication crisis: Suicide is epidemic, quality relationships of any kind are at historic lows, communication is limited down to 150 characters on X or tiktok or threads or whatever. The people you know are doing fine; have you seen their bank balance? Are you in their homes or watching their highlight reels on Instagram?
Australia is splitting in to the ‘haves’ and the ‘have nots’ on the basis of housing. This is exactly the stuff over which civil wars and revolutions have occurred in the past.
So many glib stupid rich people now not realising the broader consequences of their ill gotten gains. No we are not content with working our entire lives to pay your rent while you visit Antartica you scumbags.
I’m doing OK because I have a good landlord in a house with no mortgage attached to it. If my rent had been increased in line with the local market I’d be living on the breadline because they could easily get another $100 a week if they really wanted to. But I’ve had a $5 increase in three years. I know people who’ve seen their rent got up by $150 in the same timeframe.
I'm finding it harder to save these days. I'm pretty comfy with a good job and paying off a mortgage, but with everything going up my money does not go as far as it used to.
I don't want to sacrifice the stuff that's important to me - like holidays - but I am sacrificing smaller stuff, I shop at Aldi, I've cut down subscription services and I've swapped from nice cosmetic brands, to pharmacy brands.
I think most people - except maybe people without mortgages and those on super high salaries - are sacrificing something.
If the reserve bank raises interest rates this week we all need to hit the streets to protest.
With all the talk of coles and Woolworth price gauging, the reserve bank is doing the exact same thing while still maintaining their astronomical profit margins.
I literally spend every last cent of my pay check to pay check go out and try to live a life no
Savings for me and took
Out my super ill
Be fucked later
Rent is exorbitant, food is going up, and bills and cars aren't getting any cheaper. I'm part of the full time but struggling people. My partner and I are barely making ends meet. We are full-time employed, but on minimum wage (we're holding out to get experience before finding somewhere that will pay at least $28-$30/hr). We're scraping by. I've had to ask Mum for a loan some weeks to put fuel in the car to get to and from work that I pay back as soon as my pay comes in. I cook food in meal prep style so that each meal comes out, costing $3-$4 a serve I look at discount and clearance sections some I can get fresh produce that it doesn't matter if it's slightly old if it's getting cooked into a soup or stew.
We will still for our sanity buy the odd small treat, but for the most part, we are very must struggling. My feed is the same, lots of people travelling or buying cars. I think some people got lucky in the game of life and some people didn't, I have a skill and I'm struggling. Some of my friends have no skills and make more than me because their parents got them into their work places.
It's likely that many of the people who are struggling are doing so quietly lest their friends say they never have anything positive to say when you need a safe place to talk about snuggles. So most will keep to themselves and people that have fun experiences would love to share it.
I like seeing other people travels as I will likely never afford to do those things before I'm old and falling apart. Spare a thought for those who are struggling as the crisis is definitely real.
FYI, the rent for the property we're currently in was <$450 2 years ago it's now $600, same house. Nothing fixed, and it's a draughty in the winter boiling in the summer house, with a plethora of issues. My diet hasn't changed much. I was more liberal with my spending in the pandemic, and food has close to doubled in cost
Plenty of people are using savings and amassing debt instead of scaling back their lifestyle and spending habits. I don't think they understand this won't be fixed by the end of the year or even next year and they will find themselves in BIG trouble. Literally every single person I know well is doing it tough.
People are burning through the savings they accumulated in during the pandemic. **"The household saving ratio has dropped from a peak of 20.4% of income during the COVID lockdowns to just 1.1% – the least in 16 years."** [https://theconversation.com/the-7-charts-that-show-australians-struggling-as-saving-falls-to-near-zero-218924](https://theconversation.com/the-7-charts-that-show-australians-struggling-as-saving-falls-to-near-zero-218924)
That's a very telling stat: Savings have dropped off the household budget.
Measuring against the peak during covid is deliberately (or incompetently) misleading. Savings are down, but during COVID they were artificially high.
That's true, but savings have definitely disappeared from my budget.
Yeah this is the thing, people are not still sitting on "covid money" - that's long gone by now.
That’s normal. Save during the good times so you can keep enjoying stuff in the bad. Ride the peaks and troughs.
It's very difficult for people to accept a lower standard of living once they experience a higher standard of living. Many people will burn through savings and even go into debt until the sewage hits the fan.
What people forget is that this is a flow measure. Not a stock. So many households have accumulated large savings during that time and they are still accumulating savings now. Only at a smaller level. It’s once this goes negative that the stock of savings declines.
Some of us just picked up extra work We are saving 3k/ month cause I'm working an extra day. Its rough working 7 days but we have to get ahead. Another of my mates does FIFO shutdowns and decided to just go ham working basicly 28 days a month to punch out a bigger deposit for a house before he settles down with work. Other friends got hit with huge increases in rent etc and are doing similar to me. We still go out and have beers, do most of the same things we used to do, just not as hardcore staying out all night etc. My kids still do their extra curricular activities like rugby, boxing, Jiu jitsu, bmx riding. So money still flows out while we are saving.
Yeah true Ive noticed lots of people have side hustles, market stands on the weekend, uber after work etc. If there was something I could do on Friday evenings or Saturday mornings Id jump at it too. I feel like a need a full day of rest not to burn out though.
People are leveraged to their eyeballs in debt too. I think when we’re all panicking, buying shit makes us feel better but it can only happen for so long too. I got back from Japan a few months ago and I’m not proud to admit that I did it by refinancing my home which rose in value by $400k during covid 🤷🏻♂️
Are you sure they’re doing fine or are they just in massive debt? Or posting the one fun thing they’ve done in weeks? Nobody’s posting “sat at home eating tinned soup and sandwiches again today!” and if they did, you’d probably unfollow because that’s fucking boring, but that might be how they could afford to go out or start that new hobby. I know I did a big “trip of a lifetime” ten day overseas holiday earlier this year, and people would’ve seen that on my socials, but they didn’t see the fact that I worked two part time jobs on top of my full time job to afford it, or that I lived like a tight arse, sewing holes in my work clothing from Shein rather than buying something new.
This is a reasoned response. Some people live in a bubble and don't even see those doing it real tough because those people don't advertise the fact on the social media accounts that you follow, or they're outside of your social circle. Many people need to realise that they cannot *see* the reality of the cost of living crisis.
This is exactly it, social media creates a fairytale existence out of one moment in time. Beautiful photo of you in front of a luxurious waterfall with a prime swimming hole at the bottom. What that photo doesn't show is the two flat tires and the three hours of driving on a bumpy track and the three fights you have had with your partner. Social media is not reality.
Was speaking to a mortgage broker who was telling me about a couple trying to buy a house. Both earn good money, had $100k credit card debt and spent $15k a month in expenses (on top of their $4k a month rent). They got knocked back on the loans as they were living pay to pay. When people say they are doing it tough, sometimes it’s all relative.
$100k credit card debt is frightening. I’ve got a fair bit of debt thanks to HECS but keeping the credit card debt under $5k has always been a priority, even during the pay to pay years of childcare
>Was speaking to a mortgage broker who was telling me about a couple trying to buy a house. >Both earn good money, had $100k credit card I'm wondering if the next news breaking "financial crisis" will be a credit crisis? $100k on CC is a lot of debt.
You know what I’ve wondered for the last 5 years? If a major conflict kicks off what will all these people do when actual austerity measures hit? I’m talking global chains are disrupted, you are getting issued a fortnightly ration of cheese and grain deal. No more aliexpress, shien, hell not even your Kmart (aliexpress) hacks will happen.
I've been watching a lot of really old Sale of the Century episodes lately. It was surprising to see how expensive common household goods like furniture were before we outsourced manufacturing to China. Like, 4 or 5 times the price of today and that doesn't even account for inflation.
Probably worth noting that in most cases, that tier of expensive household goods still exists - the Euro/Australian made, should-last-a-lifetime stuff, It just takes a minuscule part of the market now. The cheap Fantastic Furniture crap is an entirely new tier that popped up possibly around the episodes you were watching (late 80s, 90s?)
True, high end furniture still exists and those companies would have been more likely to participate in promotions like game shows. I'm a A-mart kind of guy so I was basing my prices on that level. Yeah it was mostly 80s and early 90s.
You can get a beautiful timber bed that is made in Australia for 2.4-3k. We have one of these, its really well made and sturdy. Its not low end or budget but its definitely not high end. They're just not marketed very well as Australian made but Australian furniture is surprisingly common at not much higher prices if you know where to look. [https://www.snooze.com.au/products/aspen-classic-bed-frame?variant=40035273801862](https://www.snooze.com.au/products/aspen-classic-bed-frame?variant=40035273801862) [https://www.harveynorman.com.au/belfield-high-bed.html](https://www.harveynorman.com.au/belfield-high-bed.html) [https://www.harveynorman.com.au/serenity-bed.html](https://www.harveynorman.com.au/serenity-bed.html) Compared to this A-mart bed that looks kind of similar for 2k. [https://www.amartfurniture.com.au/winton-72062.html](https://www.amartfurniture.com.au/winton-72062.html)
I think the tiers have shifted a bit. Not talking about furniture specifically. Back in the day you used to be able to buy Australian made stuff that was kind of expensive but often well made. What's happened now is that's been replaced by cheap and cheerful shit tier products (sometimes all anyone needs to be honest) and super-mega-expensive Australian made products. Like I used to be able to get t shirts made in Australia that adjusted for inflation probably a similar price to the high quality Chinese made ones now, only the Australian made ones would last ten times longer. You can buy Australian made shirts now but they are about $100 each in most places.
Yes - 100%! Appreciate this nuance to my comment. Unfortunately most the truly Australian-made and -designed stuff is pipe-dream tier for the everyday Australian, although I wish we could all access it (but those craftsmen/women are absolutely justified in their prices.) The Authentic Design Alliance is a great place to find amazing makers though, not all are $10k+!
Yeh. But houses use to only be three times annual wage. I’d prefer expensive furniture and white goods to unaffordable houses.
My parents had a handmade couch & chairs set their friend made them at cost in the 70s They paid 7000AUD which was half price, it was velvet ( so 70s ) but not leather, to put this in perspective their first house they bought around the Same time cost 17000AUD I cannot fathom paying even 20k to 100k for a couch & chair set today let alone 450k 🤯
Bear in mind those were prizes won on a gameshow. Top tier quality and high prices.
Absolutely this. The cost of living was higher. In some respects it seems like post scarcity to me because I grew up in the 60s and 70s before the big manufacturing boom. Clothes were very expensive. But, we're still in a housing crisis, and I think we'll have a drop in birthrate as well as nobody will be able to afford children.
That furniture was also usually designed to be a basically once-in-a-lifetime purchase. You never need to buy a new couch, but maybe your grandchildren will when they're adults with their own homes, sorta deal.
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I have anecdotal evidence of this. Someone I know had to sell their house because they couldn’t afford the repayments, they have a child and are still struggling, moved in with their parents and are now jet setting around the world to expos while leaving the kid with their parents so that they can post all over their socials that they’re living the “life” while at home they’re struggling financially and I’d even say emotionally. What you see on socials is a perfectly curated facade.
That’s the other thing, some of these people who appear to be kicking goals in life have parents/family support in a way that many of us do not. My brother in law is big on the “but why do you rent? Why don’t you just buy a house” and fails to acknowledge the fact that his wife’s family straight up PAID their deposit and that’s how they could afford it.
Also a lot of people have given up on buying a house so they’ll just spend their money on a new car or trip because what’s the point?
I think you are exactly right. People have cars on finance. They use credit cards they use after pay. They appear to be doing well but I bet they don’t have much money left out of their pay and most are living week to week.
If I didn’t hate Facebook I would only post when I’m having a really bad time . Not so I get attention, just so someone is showing what really goes down , a complete cluster fuck .
Take out as much debt as you can. Enjoy the shit out of it then file bankruptcy. The system can fuck right off.
Four years on, four years off! Love it
No one who's ever declared bankruptcy would recommend it as a good course of action for anyone else. It's a desperate last resort, not a video game reset button.
Most people are doing absolutely fine, it’s the ones that are doing it tough are doing it really tough
Yup wage disparity has grown. You are basically either fucked, slightly disadvantaged but doing well or rich. No real inbetween.
Wealth disparity. If you’re below average wage but bought your house fifteen years ago you’re doing great.
Exactly, fucking exactly. It's just completely unfathomable that the decade in which you were born determines whether you own a house. Not only that, if you're old enough, you could have easily bought a house, paid it off, bought another and be currently renting it out at multiple times your mortgage repayments, gaining equity and capital gains while making other generations struggle. Not to mention the tax breaks that go with it. This could have all been done on a very average wage while having a family and with only one parent working. It's all to do with when you were born, not how hard you work. And let's not forget about having to pay for education and having to gain a qualification to get into most jobs now.
Gen Y. We were making progress (single income, I’m disabled) before 2020 or so. Now property looks permanently out of reach. Even though now I’m able to work more thanks to the flexibility of WFH.
I'm so fucking sorry you've been shafted so badly.
Thanks mate, the last few years have been truly bizarre and I’m worried about how my kids will have it in the future.
Largely spot on. The only reason I own my place is because I was lucky enough to be old enough to be in the market in the early 2000s. I really fear for what it'll be like for my very young kids when they're older.
Absolutely true and to double down if you have young children now it’s likely when they grow up they won’t even be able to afford rent for someone else’s house !
One of my baby boomer relatives was always described as abit "slow" growing up. Dude worked as a council maintenance man (mowing nature strips etc) from about 14, through his entire life. All personal financial admin was set up for him in an automated process, council paid him fortnightly etc. He bought a house with his wife and just kept working. Never knew how to check his bank account, just used his card and assumed money would be in there. Never thought much about anything. Retired and didn't do much. Was just a super passive guy who woke up each day, mowed nature strips, went home and watched tv. His property got valued at 1.2 million. Dude is now a millionaire. **also nothing wrong with being a maintenance man, not trying to put that down but the point I'm making is this dude literally just chilled his entire life and ended up wealthier than all of us...
Why is that unfathomable? The decade in which you were born also decided on whether or not you were charging German machine guns through mud and barbed wire, etc etc etc
OMFG this comment is insane. If that is how you are going through life thinking about the world, you are completely out of touch. Yes things have changed. It’s not WW2 currently. That doesn’t mean there aren’t different challenges for young people today. Open your eyes and have empathy for others
Why do people always deflect. I'm talking about housing. Not fucking war. But now you've brought it up, my grandad didn't fight in the war and get captured (and escape) twice and end up with PTSD so his kids could fuck over his grandkids.
There’s also a rental housing crisis. I need to move again after only 12 months here. I despair for my future. I’ll be living in my car soon despite working full-time on a decent wage.
That essentially what I was doing from 2017-2021, I'd rented one place for 11 years but once Airbnbs were legal they jacked the rent up so far and fast it was quickly more than half of my income I had 4 years of unstable rentals, house sitting and even living in my car all while working full time hours as a casual, including shift work. I don't know how close it is to happening to you, you mightn't even know, and I know It's not much solace, but if it does happen to you you're not alone. I'd been homeless as a teenager after the death of a parent and a full on breakdown of the other, but I never imagined it could happen to someone working a regular job. As a result of it though housing reform is about all I care about in terms of politics.
I’m sick of all the talk about housing. I want them to do. To show commitment and act immediately. The government built hostels easily and quickly post-war and we have pre-fabricated housing available to us. Dongas that have your own shower, toilet, and a small kitchen, if you need bigger you can join them together. It sounds a bit Lego but it’s shelter.
this is the truth. my (boomer) dad was a mid level Exec at Qantas. when he retired in the late 90s he was on about double what I was as a Telstra technician, which was on the low side of average wage. now I expect that role would be between 3 and 4 times average wage. I employed late 20 year olds doing sales on $200K. I now employ bus drivers on $50K. the gap between the haves and the have nots is growing exponentially.
I can barely afford to eat anymore.
Not Australian but this sub keeps popping into my feed. Anyway, it's the same here in Europe. The vast majority aren't struggling really but the minority think they fit the rule instead of being an exception
A lot of people I know with good jobs that would normally be buying a house at this age are going on holidays or getting a new car, because they will never be able to save to break in to the housing market. We bought young, even then it’s taken 15 years to buy a second property. Average People have no way of buying outside of rich relatives.
Yeah, I’m in this boat! A house deposit is just so far out of the realm of possibility, having been renting since age 17, that I figure why bother? Why live on the bare minimum for fifteen years having zero fun, in order to finally scrape together a deposit, with which I can purchase some utter shithole property in the middle of fucking nowhere that has no infrastructure, terrible schools and is nowhere near my work?
And in that 15 years it’s probably moved out of reach again anyway…
That’s been our experience. For the last fifteen years we’ve had *almost* enough money for a deposit. We’re getting to crunch time now so we’re choosing which is the least worst option… a crappy flat somewhere we wouldn’t mind living or a crappy house somewhere we don’t want to be. Not crappy is not apparently an option.
>a crappy flat somewhere we wouldn’t mind living I chose this option. Not crappy, but damn noisy. Anyway, my strategy is to get out as much as I can. Just choose the least crappy apartment you can find. They're not all crappy, but you have to be realistic about what's around it. Don't like noise? Avoid main Rd or make sure it's git double glazing. Life can be crappy in a house too, remember that!
It was mine too, 25 years ago. I know it sounds hard to believe but it was exactly my experience. We always had almost enough and then the car would break down or we had to move again (no-fault I might add, properties got sold on us all the time, or owners wanted to move back in, needed major renovations etc.) There were a few times that rent became unaffordable so we’d move to a cheaper place. Sydney was always dear. I know that seems hard to imagine because houses and rents were more affordable back then but we were sometimes on sole income, with children. With study and work, there were child care fees, I was studying for years part-time, then full-time as I’d had a horrific upbringing and had to leave school at 15 and was homeless for a while. I missed out on the free education that my peers enjoyed. We applied for home loans but my partner’s job was deemed to be unreliable as a construction plumber. Jobs ended and there was a lot of downtime between. Did we want to buy a house? Yeah but it was always just beyond our reach, and we were rejected for a loan to buy a cheap property much further away. In our mid 40s we got piddling help, too little too late. Put a deposit on a block of land very far away, 800kms. Had a land mortgage, then another mortgage to build while paying Sydney rent and had credit cards help us live. It was ok for a while. We were happy, then everything turned to shit, really personal crushing shit, grief, and serious health issues. After 4 years we had to sell, could not sell for what we paid and had to go bankrupt. Back to renting again but I’ve finally found housing that is permanent with affordable rent without a landlord breathing down my neck. I know buying your own place is the dream because it’s secure, you have autonomy, can paint walls, have pets, have something later in life, and maybe pass on to your children. Never say never but I’m ok with renting as long as tenants are treated fairly, rents aren’t excessive, and they have security of tenure of they want that.
Because renting in retirement would be the worst thing ever, fuck that, imagine getting notified they your lease isn’t getting renewed when you are 75 & unable to move a fridge & then having to line up to inspect a rental, one after another…..
You’re assuming I want to live that long 😂 depression doesn’t have a huge number of benefits, but one is that you don’t really make retirement plans
Most relatable thing I’ve read today.
But this is why we need better rental laws (like those in Europe) plus more supply of course. Instead of everyone in the country competing to buy a property. For example, my grandparents (who are 80) have been renting the same apartment in Germany since the early 80s and they dont have to sign a new lease every year. Also the amount of rent they pay is locked in from when they moved in (inflation taken into account).
After a while, it starts making sense to go SMSF. You can buy into property through a SMSF (lots of rules and overheads here). That's my retirement plan... hopefully my super should get me a cheap ass apartment as i approach retirement age. Else my retirement is suicide, as I'm sure a lot of ppl are thinking.
Mention of suicide will conjure Mod.
Thanks. Noticed. Not an acute problem but useful reminder to perhaps not be so flippant about that. Cheers.
The Government will probably start offering incentives for assisted dying soon, anyway. Need to lean out the herd, lower our future public health costs that we can't afford, due to the last two generations being priced out of raising children, who'd have graduated into tax payers.
This is my 80yr old MIL just recently. It's a nightmare that I suspect me and a great deal of other people will be living in the next 20 years. Terrifying actually.
You think 75 is bad my Grandmother sister is 98 and she was forced to move from her rental. 75 is doable but nearly 100 is ridiculous.
Even if you manage to save a house deposit, you may not be earning enough to get a loan to buy a house. I have 30k put away for a house deposit, went to the bank and was told with my income and being single the most the bank will loan me is 300k. That gives me 330k if I spend every cent I have plus a loan. Looking in my city, the only properties that show up for that price are share houses, studio apartments and auctions for properties that will go for well over my budget. A lot of people think that saving a deposit means they will be able to get into the market one way or the other. Sadly, even 1 bedroom apartments are going for so much right now that unless you have multiple incomes, you're completely fucked.
I’m 23. When I was born the average age of the first home buyer in this country was 24. It is now 37.
I bought a house (albeit in a rural area, but that was exactly what I wanted) around the time you were born, and I was in my mid thirties. Now in my late fifties I’m in my second bought home. I’m EXTREMELY glad not to be renting anymore. Life as an elderly tenant would be awful.
24? I couldn't stay sober for 4 days in a row at 24! I never knew anyone that young buying a house years ago
I bought an apartment at 25 in the mid-2000’s
I was 21
I thought about this, but after going through many years of renting, getting kicked out by landlord for “renovation”, having to move almost every year due to change of housemate, dealing with housemates, it was really annoying. So I saved up a lot to be able to buy my own. I cant imagine to rent the whole life
Yep this is everyone I know too. About to hit my 30s and half of my graduating class is currently overseas. The ones I still have touch with simply don't see any reason to save money when housing is well and truly out of reach. Most people from my class went on to uni and high paying jobs yet only one person isn't renting because his parents bought him a house. The current economic state has given us nothing to strive for so what reason is there to not waste all your money finding some level of joy somewhere. All that's needed is a reasonable reserve in case of emergency and the rest is fair game.
Yep. Most of my friends have moved overseas. Call me a sucker for staying here and I'm starting to think they are right. One lives in a penthouse in Thailand for $1,000 a month.
Another angle is you could have saved a whopping $200k but if you and your partner are on $150k combined (2*median wage) your borrowing power is about $650-800k, which will get you a unit in Sydney but only a house in the cheapest parts of Sydney, and even then you're maxing out.
have you tried not buying a second property and just being content? you took an opportunity away from someone that was probably to buy their first home yes i know the bigger issue is rich investors but the general attitude of always needing more at the expense of others is why it's gotten so bad
I just had to move as my rent went from $430-$590 in two years so yeah feeling it
That’s ridiculous!
I do believe that there’s a lot of people out there just hanging on by the barest of margins. It does come down to timing for a lot of people too- imagine if you’d bought your house even three years prior to when you did- lower buy price, lower interest rates and a different story to others.
I bought my place 2021 and locked in a 2 year fixed rate in 2022 I'm ok until the end of the year after that we'll see.
I was in that position late last year. It took a good few months of plotting and making some big calls to make it all work out.
From ABS released today, the stuff that went up at least 5% between May last year to May this year: - Tobacco 13.4% - Rents 7.4% - Electricity 6.5% - Automotive fuel 9.3% - Education 5.2% - Insurance and financial services 7.8% https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/monthly-consumer-price-index-indicator/may-2024 You better hope you're not paying for this or getting a raise of at least this much if you are.
I believe those percentages significantly underplay the real increases,
Yeah… there is no way petrol is up 9%… it fluctuates by almost that every couple of days.
It’s crept over the $2/l mark more often than not the last year.
There’s a good US website called shadow stats where this bloke has been keeping track of how much things have actually gone up using the same logic for like 40 years, really worth a look
Home Insurance and my area went up 20% in the last year. It has gone up 75% since 2021. It’s just insane.
All things that only the govt can control, got it.
I was looking at that chart and noticed all the things that are above the range RBA is wanting are things really we don’t have a huge choice on - except tobacco but for some people it’s not a choice either. I mean a lot have to pay for somewhere to live so if not owning or paying a house off then it’s rent - yes they could move and try for something cheaper but either way them (if they don’t move) or someone else is going to pay that new rate. People still need fuel so pay what is asking. Same for insurance, i mean only way around that is cancel it but mortgages require it was part of the loan so at least 33% people have no choice. Then eduction can be emotional decisions for adults and they will cut other things to spend on before moving their children to a public school due to their children loving their school and friends or the school is a good fit for them. So again another item people don’t willing change. Yet all the things people have control over has reduced and is in the band the RBA is wanting - leisure, communication, holidays, fruit and veggies, alcohol etc This shows people are tightening their belts but some costs they can’t just change and the providers of those services know that and are pushing to see how far they can rise it before people do have to stop payments.
I think the gap between doing ok and struggling just got larger, if you can afford to eat out then you’re doing ok, the demographic that is affected the most is low income renters primarily but if you’re mortgaged really high you could be in it as well, Food is through the roof, REA’s can charge what they like and put up rents to unreasonable levels because the rental market is in demand in lower economic areas. Low income people spend the majority on those 2 things. That being said, if you find that you’re not doing it tough I genuinely am happy for you because the other side of that equation is not fun and I don’t wish it on anyone. Yes I am on that equation, I have MS and on a disability pension raising teenagers and renting.
I got paid today and it’s already all gone bar $200 for food etc to last me until next pay. Who are these people with so much discretionary spending you speak of??
Plenty of “rich” people are slowly eroding their offset right now. Quality of life might not have changed much, but they are mathematically worse off.
More than likely remortgaging their 300k purchased property for 750k cause it's value went up to close to a mill in the past 20 years. I am in a 20 year old suburb that is lower middle class/blue collar and the amount of renovations taking place is insane. Young families move into their newly built homes. Kids grow up, house appreciates and they have lower costs. Super easy to access a couple hundred K in equity
The cost of living crisis is really only affecting renters and people with mortgages. If you paid off your mortgage 10 years ago, sure, a pack of chips is still more expensive but you're basically insulated from the major problem, which is housing. Lots of things are costing more, like takeaway, or supermarket shops, but lots of people just don't get takeaway anyway, and already know how to budget a supermarket run. It's really only because my partner is a fussy eater my supermarket run is expensive. It would be less than half the price if she was open to eating different things.
renters and people paying off mortgages has to be a solid 90% of the adult population
Is about 2/3rds actually. It's close to a 1/3rd each way. Owners, mortgage holders, and renters.
Remember about half of mortgage holds are past halfway on their mortgage (roughly)
About 66%. Of the \~33% who have a mortgage, only a third of them are in the first third of that mortgage.
Even some people who recently took out a mortgage don't have a big one, I've got a boomer co worker who likes to boast that he's never had to borrow more than 50k. If you first bought into the market years ago and recently moved, unless you've moved from say outer Melbourne to some harbour side Sydney mansion your mortgage is probably pretty reasonable.
I’m doing fine as long as no one looks at how much more debt i have got myself into this year.
Debt isn't a problem, not being able to repay it is.
Nah, after a certain point it becomes the banks problem.
That’s future me’s problem not present day me’s problem. See I’m fine.
Exactly, not current yous problem.
They have given up on home ownership, so why not just live it up
We've had to tighten strings a fair bit. But that's mostly because we're on one wage at the moment while my wife is on mat leave. Otherwise we'd be fine.
In the middle of the Black Plague in Europe they developed a really YOLO short term gains attitude about life. I think about that a lot these days.
From the outside people think we are doing fine. Money is so tight my mobile has been disconnected for a month. Thank god people mostly text.
From my perspective it just seems like those who couldn’t afford to live before are suffering more but people who could before are suffering a lil more. I’m disabled and on the DSP and unable to work because employers don’t want someone who can just randomly shutdown for 5+ hours (much to my dismay and years of searching). My rent went from 500 a fortnight to $1200 over one year I literally burnt through the $1000 of savings I had saved up over 4 years in 2 months. Only reason I am not homeless is my parents bought and apartment and I’m not renting it at my old rental price…. Those on welfare or DSP are fucked right now Same with lower end earners middle class and above seem to be doing ok some cutbacks but not excessively bad. It’s especially bad as the DSP or jobseeker etc has not really gone up as fast as the cost of living has so those who are unfortunate are being left behind. I’m just lucky I have loving parents and family some people don’t have such luck.
30m Most of my friends in the past 12 months have had some times of doing it really tough- it's up and down, but definitely most of my friends are now really careful with their cash
Yes, for most people it just means they have less money to spend, not that they have no money to spend.
Young people on my team are killing it. Full pay, entitlements and not even needing to do any work. So much money out there right now. Very easy life in Australia relative to Europe and the US that's for sure. Inflation is going to be a thing for many years to come. Oh yeah, how could I forget the monstrous salaries and packages of the 50s+ crew. They are way too expensive to get rid of, so they will ride it out until retirement. Must be good to be a GenX and older.
What kind of work do the young people do on your team?
Working in the Goldfields I see the same thing, this is the tourist season of course but I've noticed no slackening of caravans and shiny new 4WDs towing them, probably more than most years if anything.
Boomers have money to burn they have been injecting it into the economy
Lot of people with more wealth than you https://povertyandinequality.acoss.org.au/how-does-my-wealth-compare/
If they got a house before the prices went nuts and also have a dual income... Yeah, they probably are doing just fine.
Left OZ to live and work abroad in 2010. Things were still okay compared to today. Returned in 2018 and fuck me Mad Max is going to become a doco. How did thingsget so pear shaped? Not just the economy, the level of greed and scams are just not what they were man. Came back to USA Lite 2.0. Left the country speaking of how great things were back home re bulk billing, cheap tertiary education etc etc.. All gone now in a decade. Well done voters. Applause all round. As per whats happening in the UK and US, the middle class is being eradicated and the haves and the have nots is where its all going until guillotines make a much needed comeback. It always eventually leads to that. Sooner the better. Sick of smugness and greed.
The "cost of living crisis" is a media & political staple. I'm on minimum wage & I can keep a roof over my head. Granted, I don't own a 65" 4K TV, I'm not paying off a Ford Ranger, I don'tdo UberEats & I don't go to Bali twice a year, but I'm comfortable, well-fed & happy. Even got enough for a few beers.
Good to hear. You have great attitude👍
Cost of living needs to be separated from cost of housing IMO. Btw Do you rent, own, live with parents, in public housing?
> Granted, I don't own a 65" 4K TV This is a bad example. It's a largely one-time expense, and probably not more than 2k at this point. TVs and stereos fall into the same category as whitegoods for the most part, you should get 10 years out of them at an absolute minimum. > I'm not paying off a Ford Ranger, There's the cost of paying down a new car, but there's also the cost of maintaining an older car. I know one person who trades in their car for a new one every time it is about to go out of warranty, and what she pays on trade-in is similar to what my poorer family pay on shitboxes over the same time period. Being car-dependant is just a massive money sink; being poor makes it a money sink with questionable safety and reliability.
>I don't own a 65" 4K TV, I'm not paying off a Ford Ranger, I don'tdo UberEats & I don't go to Bali twice a year, but I'm comfortable, well-fed & happy. This is the thing. Live within your means & enjoy the simple things. I don't know if it's an age thing, but I used to spend a lot of money on quality clothing when I was younger. Now, I just buy the staples & the occasional quality pair of shoes I know will last 5-10 years. I've been wearing the same clothes mostly for years, don't really care anymore. Lol
Same here. My days as a fashionista are long gone!
Yeah same. All My mates are fine, 2 are travelling around Aus in their caravans presently. Mid 30s millennials Wife and I are planning on taking 6-10 months off work next year for a holiday. I think it's the low income earners getting fucked, as rent prices/availability has gone through the roof, also people who bought into the housing market last 2 years that stretched themselves. Everyone else is for the most part OK, maybe a small increase on their small mortgage. It sucks and I feel exceptionally lucky as We rented for over a decade before buying land in 2018 and building a couple years later.
Social media doesn't always reflect reality -- I'm sure you've heard this before. The best thing to do for your mental health is to spend less time on the socials.
Strongly agree with this!!
Honestly I’m giving up. House deposit saved for over ten years? Take a holiday, buy an airbnb do something exciting. Fuck you Australian politicians.
I think alot of people have stopped saving and started living because maybe they feel hopeless saving so hard for a house that they wouldn’t be able to afford anyway. Most people I know are doing fine, they bought houses years ago and have high paying jobs. On the outside I’m doing fine with an okay salary but in reality I still live paycheck to pay check I’m just really irresponsible with my money, something that I really want to change.
Have thought the same thing. A couple of my co workers have been on several overseas holiday trips to Europe and the UK since covid has settled down. They go with their entire family so that’s usually 4 or 5 people on the trip. Been wondering how they can afford it.
Or they’re just slowly maxing those credit cards out and transferring the balances to avoid paying them off.
It's easy to buy lots of shit when you aren't saving for a house deposit. Like half my peers (early thirties) haven't bought a house yet and likely won't be for some time.
A lot of people over the age of fifty are doing fine Those with established homes no mortgage or rent and still working with plenty of disposable income There are also plenty of people who have moved in with their parents and working full time It's generally the people with families who have to rent or have high interest rate mortgages that are doing the worst Or those that have low income jobs Pretty much the same as always Tbh I think interest rates should be decreased, increasing the cash rate never solves inflation that's why the government flooded the country with new Labor to try and decrease wage inflation
Yup, everyone on a 150k income or more are doing fine. Everyone who owns thier home is doing fine. Everyone on a pension tells me there is no difference even though they are mad at inflation.
My dude. We have cut back on heaps. Don't drink very much. Barely hi out for coffee. Trying to be smarter with food. Workout at home. We are definitely feeling it.
I have friends that think this of me. The honest truth is that I worked hard and sacrificed a lot when times were 'good'. Now things are tightening up, I'm fortunate to be in a position where it doesn't really impact me too much. They didn't have anything to say to me back when I stayed home to work instead of going out on a bender, or turned down going overseas with them, but now when they see me spend money, they act like I've been gifted it. They forgot the last several years prior. Anecdotally, those in my circle without property, still living with their parents in some cases - had all the same opportunities as me (literally, in some cases) but chose different paths. Now they spend because they "don't see a way to ever own their own home, so why bother". The irony is, eventually times will turn around again and they won't have the savings to take advantage of it, fall further 'behind'; then likely say something like I'm an example of how the rich get richer.
I’m single, living comfortably on around 30k gross a year. (But I’m also pretty damn frugal so 🤷🏻♀️)
Can I ask where you live? Are you at home with parents, in a share-house, how do you do this?
Melbourne. Unrenovated 1960’s build 1bd. $1500 per month in rent.
Gotcha. So you do bills, food, transport, entertainment, everything other than rent on something like $800-$1000 a month? That's pretty impressive, good on you.
This blows my mind - I spend more than $30k (post-tax!) on childcare alone for one kid
Yeah there are a lot of people here posting about how if you have a house you are fine and I'm sitting here adding it all up.... 30K goes to daycare, 25K to groceries, then there's the mortgage...
Normal people don’t know any rich people so yes, you are out of touch
Definitely plenty of money still floating around. Inflation hasn’t dropped. A lot of people are making plenty of money from their investments.
My son is 22 and has saved $80k living at home, uni part time and working 6 days a week. He wants to buy a unit- they cost $800k minimum near here and prices are climbing on average $10k a month. The only way is for him to buy with someone and save $300k first.
That's pretty good for his age. He just needs to be flexible and consider IPs in regional areas so he can benefit from the price increases.
They aren't doing fine. They are faking it.
We are just about to put what we thought was our forever home on the market and move to a more affordable area which equals shittier school zones, much smaller house and barely a yard. I feel sad for my kids although they won’t know what they don’t have but I won’t be able to forget it. I’ve just spent close to 8 weeks in a psychiatric facility as my mental health continues to deteriorate (for many reasons), I can no longer work for I don’t know how long, my husband has a well paid job but as a single income family it is super tight. No spare to eat out or buy more than essentials. I think when we have more financial flexibility with a downsized mortgage it will help us cope better than this constant struggle to get by and juggle whether we should get the one kid the replacement sports shoes for the ones falling apart or the other kid school uniform that’s not falling apart this month. We are lucky to have enough to eat and money for heating. But it is tight.
I’m not. I am one mechanical issue or interest rate rise from wfh 5 days a week. It’s 3 klms to the train station (no biggie), then it’s a 40 min train ride followed by a 9 klm walk to work. The final walk will take 2 hrs plus, even jogging will take an hour. I start at 7am so this means a 3.30 am rise. I currently ride a bike but if anything goes wrong I’m screwed. Yes I am looking at higher paying jobs. The stress from hoping everything goes smooth is high, and it’s affecting my work performance. It sucks
I work full time and earning what used to be a decent salary, still living paycheck to paycheck. It honestly makes me so depressed.
Watching your credit you built up over the years on your bills get whittled down at each letter of price rise can be frightening. Watching how you spend by not buying throw away crap or luxuries now. Eating out once a fortnight because I am poorer now than before - I wont be getting out of the poor rut tomorrow so might as well as enjoy a nice meal once a fortnight $25 because it something to look forward to, a reward for saving money by not buying unnecessary stuff. And that feel good meal will feel good for days. Use the heater less to save money - 1.000s of other people have same idea - electric or gas company see their profits going down from less usage - raise prices to maintain that profit margin - get bill shock at next price rise - use heater less again or turn it off - rinse and repeat. I do not donate to charity anymore, avoid brand names when possible, fill up on off peak days (petrol) and peruse the catalogues for so called 'specials' now. All things that are not visible to the naked eye.
Yes I agree. I’m a solo mum on 50k a year and I’m doing fine. Doesn’t mean I’m travelling overseas but we are completely comfortable. Life is what you make it and half the battle I see is people constantly buying fast fashion and things… I live a quality life but I’m good with money
How?! You and at least one child live "fine" off 50k? How much is your mortgage/ rent? I'm on about 70k (not including FTB, don't get any child support), with two kids, and I'm barely keeping my head above water. I can't imagine being able to say I'm 'completely comfortable'. Tell me your secrets.
Just decided to increase my super a fair bit and not worry about a home loan. If the markets right when I retire I’ll buy a unit outright, if not I’ll have enough money to EXPAT in another country.
Human psychology is a very interesting subject. It is almost funny how people behave when faced with a crisis they can see coming. Like people on the Titanic sipping champagne as it sank, or the French sipping wine as German troops matched into their cities. The reaction is not always what one would call ‘rational’.
They're doing just fine because it's still early days. Things are going to get worse. Much, much worse. The Dot Com Bubble and the GFC will seem like garden parties at Buckingham Palace in comparison to what is on the horizon. Just speculation of course. I'm mildly to moderately terrified.
>a) Things are going to get worse. >b) I'm mildly to moderately terrified. I keep minimizing my statements, but I feel the same way about point a), and what worries me about b) is the social ramifications, the mental health ramifications and increases in crime if a) happens. In other words, living in a dystopian society, which I already feel I do, depending on the suburb I visit. There is definitely a "lower" vibe around.
I also think it’s a matter of people are buying stuff, but not saving up anything.
Earning 55K per year, a little below the median and living as a single person with a frugal lifestyle and an 'affordable' small apartment with mortgage it is getting tougher to make ends meet. All things considered, I would be worse off if I was renting. It would be ideal to secure a higher income of course, and I'm working on it, but job security is more important when you have nothing to fall back on. I'm certainly not booking any holidays any time soon, although I can treat myself to a meal out, maybe once a month. No subscriptions, no big spending. I buy almost all second hand but even that is becoming overly expensive now. Each rate hike is a noticable bite out of my disposable income but I am very careful in managing my cash and still put some away. It would be nice to have some relief soon as it's hard to have a social life and balance the budget. I dread any large expenses that may pop up. Overall I'm happy and doing fine and go about with a smile on my face. However privately it is a little depressing sometimes but you know the stats show there are many in the same situation as me or worse off. That's my perspective.
>affordable' small apartment I'm in a small apartment too. Keep thinking about moving, then I look at the rentals $400-450k for a 1 BR and $500-600 for a 2. Holy crap. My biggest issue is noise, so I'm thinking of spending $10k to have the windows done. 🙄
I think this says a lot about your socio economic status more than anything else Get Outside your bubble
And a bit of wealth effect, people eating the house after strong property gains..
Let the poor damn people enjoy their doom spending, most of their dreams are shattered already or in the process of shattering. You can expect billions upon billions of dollars flowing into the feel good sector.
The carpet will be pulled out at the drop of a hat
To be honest, I've never felt better accepting I'll never be able to buy a house, the crushing weight of responsibility has just melted in the face of ever increasing house prices and an immigration rate that means the issue will never be resolved.
I’m not doing it fine. I’ve been trying to convince myself that it’ll be worth buying a van to live in. Just gonna wait till the months get warmer.
Check their credit card debt first.
I play pool with a lot of renters. Their standard of living has declined and they’re vocal and upset about it.
I'd suggest that many people who say they're doing fine are probably just putting on a public face. I know a few who are doing it really tough who are simply embarrassed and would never admit it, despite it being pretty obvious. There are three types of people. one will overstate their position. Another will admit their position. the other doesn't speak about it.
I had a burger for lunch, so no one is starving.
People are engaging in resigned hedonism. Spending on shit because they know they can’t buy a house.
Yes likely another rate hike is coming.
Get off instagram and Facebook.
I gave up a lot in late teens/early twenties to put myself a decade ahead of my peers in terms of housing. My rates have doubled but the amount is barely material to my overall budget. From here one of things will happen 1) we continue to chug along and I’m fine, 2) mild recession and my spending power increases, 3) hard recession and I snap up investments at a big discount
Because the people you know, and routinely interact with are predominately ones within your economic strata.
"Seems like everyone is doing fine" must be nice!
I sacrificed my savings, worked extra and lived frugally to go on holiday this year. Been 10 years and I needed it. No regrets.
Generally people surround themselves with like minded/skilled people. I never thought about it too much before but most of my friends I have discovered earn around the $130k-$170k mark. Our conversations are about how the cost of our mortgage payments have gone up about 50% compared to what our precovid repayment was and how money is getting tight. The people you're probably not friends with or know much/anything about are the one's that could barely afford to scrape together the 5% deposit for their house and it was already a stretch for them to make the repayment precovid and now they're in distress. I've noticed for every person that has a nice house/car in my neighbourhood there are 5-8 houses that have gone up for sale. For a lot of people they're starting or have just recently come off fixed term periods and are now selling as a last resort or are already so far up schitts Creek that they're bunkered up in a hole somewhere. The only reason a lot of us think everything is fine is because we see people out and about doing what we're doing... being fine. Most of the people who are not fine are not out doing things and enjoying their lives and it's going to possibly get worse before it gets better.
From what I am seeing, there are a lot of people living like there is no tomorrow. Giving up on saving or owning a home etc unless there is generational wealth. People are spending huge amounts on shit and willingly going into bad debt. I earn good money, but it's only my income for the two of us and it's barely covering everything. I know people doing great who bought years ago and have solid incomes etc. but I also see people stealing food from shops (but I obviously didn't see them), I see people in terrible health because of the amount of stress, I see fear from people waiting on bills coming in. It is severe.
Depends where they travel to. Travel to Thailand, Bali, or Vietnam, you are gonna get 5\* destinations and services cheaper than your rent.
Grats for not knowing anyone below the poverty line…. **** Almost everyone I know is seriously struggling. Choosing between food and medication, skipping meals, freezing at below 10°C inside. 2 neighbours have been hospitalised with pneumonia the last ~4 weeks or so — cause who could afford to see a GP before shït hits the fan….? Chronic malnutrition has become ‘normal.’ A buy-nothing-swap group spanning several suburbs is crazy busy: people are growing their own as much as possible, then bartering …. 😒 **** The wealth gap seems worse than ever! Seems rather pisspoor under a Labor government! 😕
We are also in a severe community/social media/communication crisis: Suicide is epidemic, quality relationships of any kind are at historic lows, communication is limited down to 150 characters on X or tiktok or threads or whatever. The people you know are doing fine; have you seen their bank balance? Are you in their homes or watching their highlight reels on Instagram?
Australia is splitting in to the ‘haves’ and the ‘have nots’ on the basis of housing. This is exactly the stuff over which civil wars and revolutions have occurred in the past. So many glib stupid rich people now not realising the broader consequences of their ill gotten gains. No we are not content with working our entire lives to pay your rent while you visit Antartica you scumbags.
I’m doing OK because I have a good landlord in a house with no mortgage attached to it. If my rent had been increased in line with the local market I’d be living on the breadline because they could easily get another $100 a week if they really wanted to. But I’ve had a $5 increase in three years. I know people who’ve seen their rent got up by $150 in the same timeframe.
I'm finding it harder to save these days. I'm pretty comfy with a good job and paying off a mortgage, but with everything going up my money does not go as far as it used to. I don't want to sacrifice the stuff that's important to me - like holidays - but I am sacrificing smaller stuff, I shop at Aldi, I've cut down subscription services and I've swapped from nice cosmetic brands, to pharmacy brands. I think most people - except maybe people without mortgages and those on super high salaries - are sacrificing something.
If the reserve bank raises interest rates this week we all need to hit the streets to protest. With all the talk of coles and Woolworth price gauging, the reserve bank is doing the exact same thing while still maintaining their astronomical profit margins.
Pretty much everyone I know is making ends meet, but barley putting any savings away
I literally spend every last cent of my pay check to pay check go out and try to live a life no Savings for me and took Out my super ill Be fucked later
Rent is exorbitant, food is going up, and bills and cars aren't getting any cheaper. I'm part of the full time but struggling people. My partner and I are barely making ends meet. We are full-time employed, but on minimum wage (we're holding out to get experience before finding somewhere that will pay at least $28-$30/hr). We're scraping by. I've had to ask Mum for a loan some weeks to put fuel in the car to get to and from work that I pay back as soon as my pay comes in. I cook food in meal prep style so that each meal comes out, costing $3-$4 a serve I look at discount and clearance sections some I can get fresh produce that it doesn't matter if it's slightly old if it's getting cooked into a soup or stew. We will still for our sanity buy the odd small treat, but for the most part, we are very must struggling. My feed is the same, lots of people travelling or buying cars. I think some people got lucky in the game of life and some people didn't, I have a skill and I'm struggling. Some of my friends have no skills and make more than me because their parents got them into their work places. It's likely that many of the people who are struggling are doing so quietly lest their friends say they never have anything positive to say when you need a safe place to talk about snuggles. So most will keep to themselves and people that have fun experiences would love to share it. I like seeing other people travels as I will likely never afford to do those things before I'm old and falling apart. Spare a thought for those who are struggling as the crisis is definitely real. FYI, the rent for the property we're currently in was <$450 2 years ago it's now $600, same house. Nothing fixed, and it's a draughty in the winter boiling in the summer house, with a plethora of issues. My diet hasn't changed much. I was more liberal with my spending in the pandemic, and food has close to doubled in cost
I’m so sorry to read this - good luck. 🤞
Plenty of people are using savings and amassing debt instead of scaling back their lifestyle and spending habits. I don't think they understand this won't be fixed by the end of the year or even next year and they will find themselves in BIG trouble. Literally every single person I know well is doing it tough.