Subj : Re: New to this
To   : boraxman
From : StormTrooper
Date : Sun Apr 20 2025 08:41 am

 bo> The ONLY solution is for prices to fall.  No major party here, no party
 bo> actually, would allow that to happen.  Therefore the problem won't get
 bo> fixed, and young people may as well just give up and fritter away their
 bo> money.

Can you imagine the deflationary fallout if we had property prices drop? For older people, read whats left of Boomers here, you need ~75% the value of a house to afford the deposit for aged care.  

My mother, pain that she is, moved into a facility must be about 10 years ago... I've moved her twice in that time, when she first decided the one she was in was hell, and then after about 9months the alternative was a lower level of hell and decided to go back to the first one.  The deposit has climbed from 500k to over 650k now.... don't know to many oldies with that kind of cash balance, only asset tends to end up being their home.

You'd also have a bunch of current loan holders that end up with significantly less value in their purchase than the original loan, it'd turn the home into a millstone. You'd never be able to move from the one you've got if you're lucky enough to have one.

At the same time you're right what we have now is unsustainable.  Somewhere along the line there's going to be a lot of pain to straighten it out.

ST

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