Subj : Re: New to this To : Gamgee From : boraxman Date : Sat Apr 19 2025 09:58 pm On 18 Apr 2025 at 10:21p, Gamgee pondered and said... Ga> -=> boraxman wrote to Gamgee <=- Ga> Ga> bo> On 18 Apr 2025 at 08:24a, Gamgee pondered and said... Ga> Ga> Ga> Well, that sucks. But.... I think housing prices have been going up Ga> Ga> steadily in every single country, for longer than 20 years. Inflatio Ga> Ga> is universal. Ga> Ga> bo> It's not inflation. Inflation everything goes up in tandem. This is Ga> bo> specific to housing, and its deliberate. There were government Ga> bo> policies put in place DELIBERATELY to inflate the cost. Ga> Ga> I can't comment on that as I don't know if that's actually true. Ga> Inflation is an increase in the money supply. Prices rise to absorb the increase, include increases in the price of labour. As a result, prices rise. But if one asset rises much faster than others, then there is another thing affecting it. Ga> Ga> Well, I can't speak for conditions in Australia. I think it does cut Ga> Ga> it, here in the USA. The actual problem is that MOST young people do Ga> Ga> not do well with thinking/planning for their future, because they thi Ga> Ga> they have all the time in the world. Ga> Ga> bo> Understandable. When I compare my situation to my parents (Boomer Ga> bo> Generation), its quite different. What worked for them won't work fo Ga> bo> me. You can't really plan for a future that is taken away from you. Ga> bo> Imagine starting behind everyone else, and everyone in front of you i Ga> bo> given advantages to run faster than you. You'll never catch up. Ga> Ga> Not sure I understand. What has been taken away? Why are you starting Ga> behind others, and how did they get advantages over you? Ga> Ga> The only solution to such a hypothetical situation is that you'd have to Ga> out-work and out-run them. That takes massive effort and commitment.... Ga> which are things that I believe are in pretty short supply in today's Ga> youth. Many (most?) of them want everything handed to them, and feel Ga> that they are entitled to anything they may want. Reality is a harsh Ga> mistress. Ga> You are starting behind others, because you are starting with no assets, and having to save up for a deposit. The price of the house goes up as fast as you can save for a deposit. However, those who have houses, as investments, are seeing their investments increase in value, and can use that leverage to outbit the new home buyer at auctions (which happens a lot). The investor can then rent out the house. If house prices rise faster than wages, then, mathematically speaking, they are becoming more and more unaffordable. Ga> bo> That is young people today. There is no point me telling my children Ga> bo> to "scrimp and save" because basically, the only way they'll get a Ga> bo> house is to inherit mine. They may as well wait for me to die. They Ga> bo> could take managerial roles in a multinational, profitable corporatio Ga> bo> which is the #1 brand, like me, and still not afford them. Ga> Ga> I have a little trouble believing that, to be honest. One thing we Ga> haven't talked about is education levels... I think in today's world, a Ga> college degree is pretty much required for success, which is perhaps Ga> different than for previous generations. Even an advanced degree may be Ga> needed. I can assure you from personal experience and observations that Ga> those degrees make a HUGE difference in earning potential. Ga> True. But you need plumbers, electricians, floor workers, forklift driver, truckers, sanitary workers, window cleaners, electricians and the plethora of jobs which do not require a college or university degree. Also include farmers, retailers, shop workers, etc, etc. The economy has to be viable for these people as well. We require them too. Ga> Ga> Again, I can't really know or speak about how things are in Australia Ga> Ga> I'm not saying it's *EASY* to buy a house here in the USA, but it can Ga> Ga> done, obviously. I own two of them, and so do both of my kids. In e Ga> Ga> case the second one is an investment, and will eventually be sold, at Ga> Ga> good profit. Ga> Ga> bo> The thing with using housing as a profitable investment, is that in Ga> bo> order for it to work, it has to become more unaffordable, thereby Ga> bo> making the problem worse. Australians love property investment, whic Ga> bo> is why the market is shot. If this strategy worked, more and more Ga> bo> people would be able to afford homes. Clearly it doesn't. Ga> Ga> It works if you own several and eventually sell them. I see your point, Ga> but that's what drives the free enterprise system, and the laws of Ga> supply/demand, and all that. It can be risky, and scary, and difficult Ga> to get started with, but it almost always pays off well. Probably one Ga> of the safest investments there is. Ga> Ga> I think a more positive outlook on things might benefit you a little. Ga> :-) Ga> I think the "free enterprise system" then has a shelf life, and its expired now. It is not sustainable to rely on housing as an investment, because it is a compromise between using housing for profit, and housing to support the next generation. You can't compromise the latter too much, otherwise you'll literally go extinct. We need to rebalance the housing market so it serves as an incubator for the next generation, to allow young people to start families, and raise children in stable homes. It saddens me greatly to see people think that young people shouldn't have stable jobs or houses, because they are essentially torching the nations future. I have a positive outlook in the sense that I think these issues are resolvable, its just that no one seems willing to do what it takes. --- Mystic BBS v1.12 A48 (Linux/64) * Origin: Agency BBS | Dunedin, New Zealand | agency.bbs.nz (21:1/101) .