4th Oct 2017

Property gains spark inequality claims

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Property gains spark inequality claims
Kaye Fallick

Data from the Australian Bureau of Statistics (ABS) suggests that households headed by 65 to 74-year-olds were $480,000 wealthier in 2015-16 than people from the same age bracket 12 years ago.

The data, which was analysed in a report by the Grattan Institute, also showed that households headed by 45 to 54-year-olds are $400,000 richer. However, households headed by 35 to 44 year-olds are on average only $120,000 wealthier – and for 25 to 34-year-olds, the figure is just $40,000.

Figures across all age groups have become wealthier over the last 12 years, but 65-74 year olds have gained the most in that time, with soaring property prices a major factor behind the figures.

This led the Grattan Institute to claim a “wealth divide between generations” that could cause young people to fall behind and make inequality worse.



According to the ABS, house prices grew by 37 per cent on average across all the capital cities between 2003-04 and 2015-16 (and by more than 50 per cent in Melbourne alone). The boom was not limited to the capitals; prices also grew strongly in regional areas.

For households headed by 65 to 74-year-olds and 55 to 64-year-olds, property contributed about half of the total increase in wealth.

According to the report, baby boomers have also used the superannuation system to build their wealth.

Average superannuation wealth over the measured 12-year period increased by $230,000 in real terms for households headed by 65 to 74-year-olds, and by more than $150,000 for households headed by 55 to 64-year-olds.

According to the latest Census data, about 82 per cent of those aged over 65 now own their own homes, up from 79 per cent in the 2011 Census.

Opinion: False claims cause intergenerational conflict

Older Australians are locking younger people out of the housing market. Yes, here we go again with fake news about the great intergenerational divide.

Such news items may get clicks, they may even heat up the debate, but the Grattan Institute’s analysis is both fundamentally flawed and deeply divisive.

At a time when the rich are getting richer and the poor are getting much poorer, it is highly dangerous to muddy the debate with such fake news about the nature of this disparity in wealth.

Why do I call this fake news? Because the article first featured on The Conversation website, 'Three charts on: the great Australian wealth gap' is all about the headline and not about the substance of a very important issue. This highly respected think tank has been quite selective in its reporting of the ‘facts’ of the wealth gap, with a listicle style ‘Three Charts’ analysis of house ownership that only offers one narrow aspect of the problem.

Some of the authors’ conclusions are also illogical or based on non sequiturs. For instance, let’s consider the statement that "younger people are locked out" closely followed by the assertion that "the only way they can afford to buy a house is with help from ‘the bank of mum and dad’". One presumes these are the same older mums and dads who are getting wealthier at the expense of younger people? How can this be if they are contributing substantial loans, or rent-free accommodation, thus reducing their own retirement income, to assist with the purchase of a home? Seriously, with the bank of mum and dad now considered the fifth largest in Australia (by volume of loans) how can we say the older generations are wealthier at the expense of the younger? At best this is a disingenuous statement. At worst, it is very sloppy analysis.

And there is a lot more that is wrong with the Grattan Institute’s take on rich and poor.

It notes the ‘struggle’ of under 45s to save, but assumes that home ownership was easily achieved in the 1960s and 1970s, when the current retirees bought their first homes. For the record this generation also experienced interest rates as high as 18 per cent. Many first home buyers worked two or three jobs, bought one bedroom flats rather than houses, used fruit boxes for furniture and did not own late model cars, or holiday overseas frequently.

The Grattan Institute also notes that there are falls in home ownership as a result of social changes – waiting longer to secure full-time work, partner and have children – but fails to note other significant changes that have had an effect on the habit of saving to buy a home. This includes the instant gratification habits of many 20 and 30-somethings who will fly out en masse to Bali, New York or the Amalfi coast to celebrate a friend’s wedding, the cost of which may include a frock worth anything from $6000 to $25,000. In this Kardashian age, conspicuous consumption is rampant and those who cannot afford a home can often be the worst offenders.

Another illogical statement in the Grattan article is that "… most Australians still want to own a home, so it is reasonable to conclude that higher property prices are the biggest cause of lower ownership rates". One thing does not necessarily follow the other. Higher prices are certainly a contributing factor to lower home ownership – a body of academic research certainly supports this assertion. But prices are not necessarily the biggest cause of lower home ownership – other social changes including the precarious nature of work, poor savings habits and higher HECS debts all have a part to play.

And let’s not overlook the massive social and demographic changes experienced in the retirement years, when longevity means retirees have extra decades to fund and the shift of responsibility from government and industry to individuals means home ownership is critical to the prospects of a reasonably sustainable retirement, let alone a comfortable one. Older people are now expected to work longer, even though health and lack of work are the two main reasons they head into retirement (YourLifeChoices Retirement Insights Survey 2017). The highest increase in homelessness is related to women aged over 55, so the suggestion that older means wealthier is both inaccurate and damaging to useful discourse on the needs of those who are marginalised.

Factually there is a growing divide in wealth between rich and poor in Australia.

It is NOT between the old and the young. Yes, a narrow band of well-off retirees are using overly generous superannuation subsidies to treat their super as an estate planning vehicle and reduce tax.

The other 70 per cent, however, are living on a full or part Age Pension and struggling, with an overwhelming 81 per cent unsure whether their nest egg will last as long as they do. So let’s agree that there is a problem. And that it is important for all generations to own their own home, particularly when they retire and that all generations should be encouraged to do so. Thus we can reframe the debate away from an intergenerational competition, toward policies that prevent the many from this goal. Perhaps reducing or removing negative gearing for investors and overly generous superannuation concessions would be a great start.

What do you think? Are older Australians getting richer at the expense of younger ones who are now forced to rent? Or is it always difficult to get a foot on the property ladder? How did you manage to buy your own home? Did it mean using fruit boxes for furniture? 





COMMENTS

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Tib
5th Oct 2017
10:30am
The victim generation are victims according to them. No surprise there. Certain groups in the community trying to whip up an argument between the generations , probably so they can argue for less support for the older generation. The victim generation needs to remember they will get old too. Some whining 20 something saying I'm 20 why don't I have more money than someone who has worked for 50 years. Oh dear!
heyyybob
5th Oct 2017
11:55am
Absolutely Tib !! We are in the process of 'downsizing' because I'm tired of physically maintaining a fairly large home and decent sized yard etc ;) Few other reasons also of course but that is the guts of it. So far (only been at it 10 days) the interest is encouraging. However, a few comments like 'shame there isn't a second bathroom', 'it IS 40 years old' etc from parties who are obviously much younger than us really amuse me when the other benefits are obvious. It doesn't have an asking price of OVER $500,000.00, it HAS 4 bedrooms, TWO entertainment areas, a SEPERATE bar-room, a SEPERATE den etc etc. Oh, also WALKING distance (no need to take the compulsory 4WD to the shops) to a MAJOR shopping centre and 30 min drive on a major motorway to the state Capital and 30 min drive on a major motorway to beautiful beaches and entertainment etc. Fingers crossed a sensible family WILL see the real opportunity here soon :D
Tib
5th Oct 2017
12:15pm
Good luck heyyybob.
heyyybob
5th Oct 2017
12:58pm
Cheers Tib :) Forgot to mention that we well fenced (good pets/kids) and have a mature mango tree, guava tree and a mulberry tree PLUS a very nice raised veggie garden and two u-beaut passionfruit vines :D ..... a bargain for a sensible Aussie family ;)
Kaye
5th Oct 2017
10:52am
My first house 35 yrs ago had an outside toilet!! Yes you had to go OUTSIDE!
Yes 17% interest rates..NO first home buyers gift.
NO new car until I was over 40......
Yes had to SAVE up for 3 years to get to europe!
Airfares are less now than they were 30 years ago.. ie BNE-AKL $250 one way, now less than $200... I could go on but really whats the point...grow a pair and save your own money and get your own house!
heyyybob
5th Oct 2017
11:56am
Absolutely Kaye :)
Rae
5th Oct 2017
3:42pm
I agree. We built in 1973 and had the loan pulled when liquidity collapsed. It ended up taking 7 years to finish the build from saving as we went along. The rental house toilet was a pan way out the back and we had a mattress on the floor, an old wardrobe and some planks on bricks. I was 27 with two kids before I bought my first ancient morris minor. Plus I'd started work at 15 during school holidays and weekends and have always held at least one job, sometimes two and occasionally three.

I wonder if Grattan will be quite so ready to write about the loss of all the fake wealth bought with fake money after the fake property prices fall.
Tzuki
5th Oct 2017
8:56pm
Totally agree! We paid 17% interest for our home loan too. We had 2nd hand furniture, not all modern and brand new. We didn't have to get a 4 wheel drive to keep up with the neighbours either. You have to sacrifice to get ahead.
Charlie
5th Oct 2017
11:00am
The extra money is their super. Check in another 12 years to see if it is still there.
Aussie
5th Oct 2017
1:42pm
sorry mate no 12 maked maybe about 5
Sal
5th Oct 2017
11:02am
I have come to the conclusion that anything that comes out of the Grattan Institute is a waste of time. They will massage any statistics to come up with a sensationalist headline.
heyyybob
5th Oct 2017
11:58am
......and that will gratify a certain audience ;)
Charlie
5th Oct 2017
11:06am
Oops I almost missed it. There's that equality word again.
It means I want something that belongs to you.
It used to be about equal pay for women in the workforce and now its being applied to everything.
heyyybob
5th Oct 2017
12:01pm
Here they come Charlie....."you can BE anything you want, have anything you want Darlings" You WON'T have to bust a gut for 20-30 years being sensible, frugal or whatever and S A V I N G instead of spending all the time........just want it, that should do the trick !!!
TREBOR
5th Oct 2017
3:34pm
The cunning little rascals could just wait to inherit... from that older generation who slogged and saved etc.....

We're going SKI-ing, the ex and I (I'm her carer, remember and she's not that great) .... two bathrooms, three toilets and recently reno'd... two odd hours by freeway from Sydney, river nearby and lakes and ocean twenty minutes away ... boat ramp to lake ten minutes .... big yard with fruit trees and gardens of the lifestyle and the vegetable kind... one garage and two car ports ... any offers?
heyyybob
5th Oct 2017
3:43pm
Gudonyer Trebor. Old Zen 'thing'......First responsibility is to yourself THEN your nearest and dearest :) Good luck and hope the two of you thoroughly enjoy your SKI-ing :D
Rae
5th Oct 2017
6:50pm
Good luck TREBOR. Enjoy. You get no thanks for frugality and saving or being self sufficient in Australia these days so may as well enjoy SKI-ing.
arbee
5th Oct 2017
8:44pm
If they want what we achieved through hard work and being modest in our goals when we were younger then they need to try doing the same themselves and not expect to have the latest new car and a very large house to start with. It is called sacrifice and it is what most of us had to go through.
bob
5th Oct 2017
11:25am
I remember walking an hour each way to get to work ,no room for fancy jogging.sleeping on a mattress on the floor.Our big night out was watching the planes land at eagle farm.But at 28 we had a house and a child and the sacrifices set us up.Now we have the big house,the 4 wheel drive and the overseas holidays.The current generation needs to start at the bottom and not try for all in the first few years.
heyyybob
5th Oct 2017
12:04pm
Gudonyer Bob. Remember that there ARE a lot out there, like you and you will only hear from whingers who don't know how or don't want to do what we did to get where we are today ;)
in2sunset
5th Oct 2017
11:29am
Insulting article, no more needs to be said.
heyyybob
5th Oct 2017
12:06pm
Spot on !! We, who have done the hard yards, can ignore this sort of crap !! Enjoy the time you have left, on board Spaceship Earth mate :D
Dave R
5th Oct 2017
11:41am
We live on the age pension and live comfortably because we own our home and other possessions outright. Also have solar power installed. We use all the pension and seniors discounts to the max. So we are OK and our kids are OK partly because we reside in regional Queensland where housing prices are way below those in the cities. $200,000 buys you a really nice large home here.
But I do empathize with both younger and older people who don't own their home and reside in a city where the prices are horrendous. A possible solution for them is to buy a motor home and I know a few who have done so with great results.
As to a wealth divide between young and old...there has always been a wealth divide there...the growing divide today is between rich and poor of all ages.
Charlie
5th Oct 2017
11:56am
Motor homes were popular about 10 years ago when I retired early with illness
If a person was no longer able to work full time they could apply for disability pension, but over $70000 in the bank brought a reduction in the amount of pension that was permitted. Motor homes were a good idea for getting down the big bank balance.
Super could be drawn 55 to 65yo but just letting it sit in the bank brought about less pension money, if applying for disability pension.
musicveg
7th Oct 2017
8:28pm
Not always easy to find a park for the motorhome.
Crimmo
5th Oct 2017
11:55am
I got my first new car when I was thirty. I must be wealthy then. LoL. The media has screwed the minds of the younger generation and now they are trying to screw the minds of the older generation.
heyyybob
5th Oct 2017
12:12pm
Yup. If 'they' keep coming out with this unreal shite then, after a while, it WILL stick in some peoples minds and they WILL believe it :( After all 'they' were 'programmed' (sitting in front of TVs for YEARS) by absorbing the advertising about products they don't need etc.
KSS
5th Oct 2017
12:51pm
Not just the media Crimmo, its also the parents of these 25-34 year olds who have brought them up as the entitled generation
heyyybob
5th Oct 2017
1:06pm
Yes KSS. 'As you sow so shall you reap' coming back to bite some people in the bum, hey ? Finally, also, 'where there is a will, there will be the relatives' ..... HOOAH !!! (Head Out Of Arse OR Heard Understood & Acknowledge) hey ?
TREBOR
5th Oct 2017
3:36pm
Yes - girl at the local IGA comes to work in a Merc X5 (I think it is)... it's tough out there.... hard being eighteen or so these days.....
heyyybob
5th Oct 2017
3:45pm
Bwahahahaaaa !!
BrianP
5th Oct 2017
12:03pm
It's official - Grattan has no credibility any more.
TREBOR
5th Oct 2017
3:36pm
They had credibility? When did that happen?
Hasbeen
5th Oct 2017
4:12pm
Grattan has never been anything but a propaganda arm of the Labor party.

With this sort of garbage coming from them, watch out, the Labor party is about to rip someone else off, & it looks like being us.
Franzl
5th Oct 2017
12:06pm
I am surprised that anyone still reads what comes out of the "Grattan Institute". House ownership used to be affordable in Australia because the climate allowed houses to be built cheaply. Now, we pay the highest prices in the world for our "Cardboard Villas", and I am not talking about City prices. We should look at why those prices are so high just as we should look at other areas such as 40% discount on power prices etc. Usury comes to my mind.
heyyybob
5th Oct 2017
12:15pm
Yep. Try and go shopping for a new TWO bedroom, ONE bathroom, ONE garage HOUSE on a SMALL block in any large or major city in Australia ;) Good luck with that :(
KSS
5th Oct 2017
12:47pm
So its not fair that someone at the end of their working life has more than those at the start of their working life? Well boo hoo!

Twelve years ago that 25 -34 year old was 13 - 22! And 65 to 74-year-olds were 53 -62 and with already 30 years or so savings behind them.

So either re-evaluate the assets of the 65-74 year olds as they were at the same 25-34 age (50+ years ago) OR come back when the now 25 - 34 year olds are 65-74. Then I'll listen. Maybe!
heyyybob
5th Oct 2017
1:08pm
Oh yeah, baby :D
Charlie
5th Oct 2017
1:16pm
Why don't they just go back to when super became compulsory and figure out when the biggest group would be retiring. They would probably find nothing unusual about people retiring now with a bit of money.

What is it about equality-inequality that sets alarm bells ringing.
In America same-sex marriage was approved on the basis of equality.
In Australia it is not an equality issue. We are voting on whether we want it or not.
There seems to be a group of social justice people out there who believe they can make their own laws without any experience in doing so.
Sceptic
5th Oct 2017
1:15pm
Quite right to take the Grattan Institute to task on this one Kaye, but you are also guilty as the poor are not getting poorer. the poor are getting richer and there are now far fewer poor in the world than even 20 years ago.
Not a Bludger
5th Oct 2017
1:56pm
What’s New!

Just another lazy, factually incorrect, “written for the headline” release from the very leftie Grattan Institute.

That outfit simply lifted the playbook from the former USSR and would be entirely at home with the apparatchiks in Beijing.
Billy
5th Oct 2017
2:28pm
What a load of bullshit - you should carry out a proper survey to obtain a true situation in the life of aged pensioners and their finances.
heyyybob
5th Oct 2017
3:49pm
Phoawaaa !! Billy ! That would be pretty hard to do, wouldn't it ?? Might take some effort to do an investigation like that, to get THE FACTS :( Far easier to just regurgitate the crap given out at the moment. Proper survey of the situation - tcchhh ! What a nerve ;)
BElle
5th Oct 2017
3:19pm
What about those OVER 74. No Superannuation to speak of and little support from Government Pensions. Most in this group are "doing it tough". You only need to go to the local shopping centre to see proof of this. Most of the so called wealth is in the inflated value of property and that is a mis-judgement as to try to down-size is near impossible and come out on the right side finanacially. The Gratton Instituate needs a reality check!
Oldman Roo
5th Oct 2017
3:25pm
This is absolute rubbish and I would like to know who is really behind it . I am a part Pensioner and my income is well below the full Pension . Needless to say , as a consequence my Bank Account is also on the way down . So I can not help seeing this as an insult to my intelligence .
TREBOR
5th Oct 2017
3:29pm
Utter rubbish - sell your home and you need to move to somewhere else and the net gain is all that can be counted.
Oldman Roo
5th Oct 2017
5:32pm
Trebor just think about what the circumstances of another person are before you shoot your mouth off .
The wife and I are close to 80 , we both have medical problems and just selling our house and move to another is only good theory but from a practical point of view more than difficult for us . We can not go through the open inspections to have the house constantly in top order and have problems obtaining bridging finance because of our low income. not to forget the rigours of moving when we are struggling to cope with the situation we are in now .
We need to be close to Transport and Shops and in these days of very high house prices , the return from our low value house does not help much . Moving into a retirement home would be more appropriate with our handicaps but then our years of hard work and savings were a total waste of time and effort .
BElle
5th Oct 2017
3:35pm
To add to my previous comments Not all retirees are between 64 - 75. My fathers funeral was 2 weeks ago - he was 100 years old. How are any of us supposed to survive financially for 25 - 30 years on the measly hand-out of the Government. We are after all supposed to outlive our forebears.
Dim
5th Oct 2017
3:43pm
Born at the end of WW2, still on rations, new pair of shoes were usually repaired ones from an older brother, don't take this as a complaint, this situation was the same for everyone, 44 hour week was the standard with overtime being worked whenever offered, again same for everyone, got married in the 60's my future wife and I saved everything we could before we got married managed to get enough for a deposit on a 2 bedroom fibro house with an asbestos roof, toilet outside, small bathroom with shower over the bath, we were as happy as pigs in xxxx. Our furniture was mostly second hand or scrounged off family again this was quite normal. No overseas holidays for us, although we were quite happy to take our tent down the coast a couple of times a year made some great life time friends. Now in our 70's after a life time of working, we can now afford a few luxuries like a cruise now and again, but keep that to yourselves I would hate to upset anyone that has slaved for the last couple of years and haven't managed to get into their small 4/5 bedroom home with maybe only two bathrooms and a double garage to park their new cars in. Yes I know some people struggle but that has always been the case, generally speaking most people are far better off than their parents were and that's the way it should be.
heyyybob
5th Oct 2017
3:56pm
Yep Dim. Likewise. My parents never owned a car OR their own home. Dad worked 6 days a week as so many did. We had our veggie garden and it helped that Dad was a butcher :) We kids helped Mum as she did the washing in the old 'copper' using the copper stick which doubled as a learning 'tool' if we didn't pull our weight, considered others and kept our manners :) Thanks Mum & Dad you did your best that you could and I'm lucky enough to be able to be retired and content thanks to your hard working examples :D
Rosret
5th Oct 2017
4:01pm
To make any comparison here they would need to exclude the value of the family home. The comparison would have to be asset for asset. i.e. car, house, rental properties, superannuation reserve calculated as a per annum payout on current interest rates, etc etc.
Some baby boomers are very well off however others are not at all and when you hear what the average amount of money is in super there are many others who are not well off.
I can't compare my parents wealth against mine because they had a secure retirement payout for life. I on the other hand have to juggle the private super fund and predict how long it needs to last.
Our children are indeed in a pickle. Housing is so expensive, the loan repayment is over 30 years so when they should be cruising, paying for their children's weddings, uni fees, putting extra money in super etc they will still be penny pinching. It is a huge issue and the writing is on the wall.
Dim
5th Oct 2017
5:27pm
It's obvious that some of the younger generation are struggling, just as some of the older generation struggled, we also took out home loans that were over a repayment period of 25 years, in those days there was no oppourtunity to pay your home loan off quicker by increasing your monthly repayments slightly when you had a bit of spare money, that didn't come in until long after I took out my loan in the 60's I think it was a chap from NZ who chalanged the banking industry and the rules were changed. You could in some instances pay a lump sum of your loan if your bank allowed it, but there was usually a penalty, if like myself yon had a terminating society loan you were allowed to buy back a share which could shorten the life of your loan, if I recall correctly each share was about 3/4 weeks wages, so not many could afford it.
Raphael
5th Oct 2017
4:17pm
Doesnt need a genius to tell you that all retired homeowners with a decent sized family home have made a killing in the property market.
Every one of them can downsize and have plenty in the kitty to spend for the rest of their lives
heyyybob
5th Oct 2017
5:46pm
So the genius tells us that all retired homeowners somehow (easily?) paid off the loan (if they have) on their 'decent sized family home' that, presumably, they also raised a decent sized family whilst doing so. They CAN, if THEY so desire, choose to downsize and have some money over to live comfortably the rest (?) of their lives :) And so.........??
Not a Bludger
5th Oct 2017
5:47pm
No, Raphael - they haven't made a killing because they haven't sold - simply an entirely theoretical, on paper only, so called gain.

And, what right do you have to instruct them to sell - none.

Such a decision is theirs and theirs alone.
Raphael
5th Oct 2017
7:07pm
And so gentleman, these people are well off by anyone's standards.

Sick of them whinging and asking for more handouts while the sit on hundreds of thousands and in some cases millions of "spare cash", tied up in their homes and probably also in fire proof safes or even off shore
Not a Bludger
5th Oct 2017
7:54pm
And, Raphael, likewise, sick of you permanently outraged, leftie moaners & groaners wittering on.

Own up, you want the taxpayer via government to stick money for free in your mitt and when they don’t grizzle, grizzle you.
Raphael
5th Oct 2017
8:36pm
you're a very confused man, Bludger
Rosret
5th Oct 2017
9:11pm
Actually Raphael downsizing doesn't necessarily give them a nice cache of money at all.
The apartment market is totally different and often more expensive than the housing market. Then there are body corporate fees and unknown costs that they may have no control over.
Unless you are prepared to move away from the support infrastructure that is so important as one grows old then its not an advantageous move at all.
Rae
6th Oct 2017
7:12am
Yes Rosret and there are thousands of apartments now built with materials not fit for purpose and the new State building codes do not protect the purchaser.

Unless you know the builder and are very clever buying one of these new builds could prove very expensive and ruin a lot of older people past working life.

Many who bought for investment reasons will find all their profits going to fix the mess deregulation has once again created.

Don't hear Grattan complaining about that nightmare waiting for unsuspecting victims.
anonysubscribe
5th Oct 2017
6:05pm
I came to australia in 1977. worked in marginal administrative roles through 2 recessions before I lost my job to better connected cronies of new management and lost my job permanently in 2005, after a long losing battle with my employer. When I got divorced in 2001, I lost my house and life savings as part of settlement. I paid 18% interest to the NSW government fixed interest schmolze and nearly went bankrupt. The GFC and dishonest financial services advisers robbed me of major savings.

I do not own a home but rent. My children do not support me. With some savings in income stream mode (pension), my age pension reduces in lock step with it and I cannot spend more than the total age pension without reducing my age pension further!

The Grattan Institute makes broad statements about matters which sweep aside the inconvenient truths which those who are not women, but also have fallen through the cracks of home ownership. We venerate wizards of Oz lightly in this country. The polished veneer of sophistry requires any rebuttal to be doubly rigorous. I am grateful to this article which rebuts some of its sweeping generalisations in a way I could not.
Rae
5th Oct 2017
7:19pm
Life can be damn unfair but spoilt brats like the Grattan researchers fortunately have no idea. They might find out though that what goes around comes around and that "wealth" can be fleeting at the best of times.

Far too many are being penalised for saving. There is no fairness about it. In fact it is injustice on a scale Fern would find appalling.
( Charlotte's Web)

I am also pleased Kaye called them out on this one.
Anne Ozzie
5th Oct 2017
7:17pm
Think you are all missing the point - This was a deliberate attempt to turn the conversation from the inequality between rich and poor into an intergenerational war! Wouldn't trust the ABS figures since the staff have been decimated and it has become politicised - eg anyone who worked one hour in the last week is counted as 'employed'! The Grattan institute started out to be ideology free but is now funded initially by the Victorian and Commonwealth Governments, BHP and NAB. Grattan also receives money from its affiliates, which have included Google, Origin Foundation, EY, Price Waterhouse Coopers, Stockland, The Scanlon Foundation, Wesfarmers, Jacobs, Mercy Health, Ashurst, Corrs, Deloitte, Urbis and Westpac. Recently it has become more right wing in its direction and one wonders how the big multinationals are now shaping its policy through funding.
Raphael
5th Oct 2017
7:21pm
"inequality between rich and poor"
never understood that oxymoron

Grattan has become right wing???

Whenever an independent research finding is not acceptable to the left, they shoot the messenger- roflmao !!!
Oldman Roo
5th Oct 2017
8:22pm
You still have not understood a lot of things except how to degrade the less fortunate in life .
Rae
6th Oct 2017
7:22am
And what happens Raphael if we all go list our homes today? You go first mate and I'll watch to see the effect of millions of boomer houses hitting a property boom that is already tracking sideways or falling fast. The Brisbane market for apartments id down 20% and rents falling along with it.

Too many shoddy apartments built too fast but not near timely enough. I've seen this a time or two and it ends badly in Australia when the developers and builders start declaring bankrupt and the suppliers and worker's get left with nothing.

Problem is you kid's have never seen a bust or a recession.

I think that may be fixed soon though.
Blondie
5th Oct 2017
7:34pm
Back in the 60's, when we applied for a loan for our first home ( Lane Cove:$14,500!!!!) a separate house....huge block...the bank made me sign a paper that I wouldn't get pregnant for 5 years, even though both our signatures were on the mortgage!!! Good old days....NO.....' Mad Men' on steroids!
Raphael
5th Oct 2017
8:36pm
And did you ?
MD
5th Oct 2017
8:42pm
Regardless of the source, albeit Gratten or any other fake news findings, isn't it all relative after all said and done. Try telling anybody - is anyone still alive and functioning - that can remember the hardship experienced during the period of the great depression, that their generation had it easy by comparison to the present wannabe young-uns.
Post WW2 generations lived through a period of investment, growth, manufacturing and high employment and although wages were constrained to support the uptick, people for the most part were happy with their lot. Not for them/us were the end of secondary schooling jaunts intrastate, interstate and certainly not overseas. Most considered themselves fortunate indeed to finish school and shortly thereafter immediately commence a working life. Privileged were the few that went on to university and most these folk were supported by parents and/or held down part time jobs. Not for them either was a 'student allowance' and certainly no subsidised loan available for a gap year of overseas indulgence.
As previously mentioned, the Conversation article disclosed some data relevant to demographics in relation to the age at which folk nowadays start to settle down and consider a house purchase. Most the resented 'oldies' were well into raising a significant family before hitting their thirties. Mind you, anyone game enough to ask the current bleeding hearts why it took them so long to settle down, they'd have no qualms browbeating you as regards their entitlements after all those tedious years of studies, right, got it ?
So here we are, those of us in the real world meantime - the wheel having spun round and around - and barring any other revolutions or the more likelier probability of spinning off this mortal coil, life will grind on relentlessly.
The current 'precious' lot just need to find their own place on the treadmill of life cos what goes around comes around, so the saying goes.
One good turn deserves another after all said and done, eh ?
heyyybob
6th Oct 2017
11:14am
Nicely and correctly said MD.
Jolly
7th Oct 2017
7:36am
Just a little secret for those thinking of selling up. You don't have to buy a normal house! If you are over 50 you can buy in a Land/lease Lifestyle Community. We have just sold our villa for a good price and will be purchasing in a Land/lease Lifestyle Community. They are in all states(we are in NSW).
anonysubscribe
7th Oct 2017
10:55am
hard to find one where you have low fees and costs and are assured of lifetime residence.
a good suggestion.
ex PS
7th Oct 2017
11:58am
My first house was 40 kilometers from the nearest city, as we got more financially solid we moved a bit closer using the equity in our house to gain leverage.
Just because you can't afford to buy in an area you prefer to live doesn't mean you can't buy where you can afford and work your way up.
If I used the same argument as the young of today I wouldn't have ever paid of a house either, I would never have been able to afford to buy my first home in a capital city.
I fear we have created a generation of people who demand instant gratification and look to blame others when they are not GIVEN what they want NOW.
Supernan
7th Oct 2017
12:50pm
Hilarious to say the older gen are rich ! We started buying property when we were 18 & 19 ! Every penny we had went into it. No travelling around the world, no partying, no expensive wedding. No buying stuff unless we could pay for it outright. Few kids today would even dream of doing it that way. High interest rates, no family support, no baby bonuses or first home grants. Now we cant even afford to repair the house - our one asset !
mike
13th Oct 2017
3:53pm
Our children are being forced out of the Sydney housing market by the Chinese. There are hundreds of new empty houses and units sitting around Sydney empty owned by chinese investors. The chinese mentality is that when they do move into a dwelling it must be brand new, NO second hand dwellings for chinese, so chinese investors buy up ( money no object) property and hold it empty until it increases in value to be sold. CAN YOU IMAGINE AUSTRALIANS DOING SAME IN CHINA? or anywhere else in the world. We are the laughing stock around the world. Maybe someone should tell our Australian Polititians they should represent Australians first.


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