Are Young People Just Greedy?

[kiwipete]

We hear all the time about how house prices are so high and yet are they really that high or is it the Houses that people now expect to buy much bigger than the 1970's, when people were happy to buy a small 3 bedroom home in the outer suburbs...

So to afford these lavish homes close to the CBD both partners have to work and the children are sent to daycare or mum puts off having kids....

Just some thoughts....

[Nomad]

Before I had my current business I was a valuer and I valued over 19000 homes. I saw both ends of the spectrum where "young" people had purchased basic "breeder boxes" as they are known through to designer homes with amazing furniture packages.

I don't think anything is that different today.

So no I don't think all young people are greedy, that is not an age specific character trait.

Cheers Nomad.

[Swannie]

Hi Kiwi Pete, not sure if they are greedy or just want everything now!!!

I would class myself on the younger side and made the call to have my kids pretty young so I could enjoy them when they are young adults. But having the wife at home during those first 5 years really added to the financial pressures and yes she had to go back to work. But we agreed that if we want the camper, car,  private school education etc etc then both working was the only way.

I do live on the outer suburbs and not in a palatial palce either!!!!

Times are now so different mate. I think we are our own worst enemy wanting everything now!!!

Greg

[Symon]

No, I don't think young people are greedy.  The old people who jack up house prices are the ones who are greedy.

When we have a US style housing bust we'll see who cries the most.

[barneys]

its not that they are greedy ,i think its because money is to easy to get do you remenber  when you had to book a meeting with the big scary bank manager , and plead with him to give you some money .now you just have to walk near a bank and they will rush out a give you all the money you want , to do with what you want to . so i think this has a lot  to do with house prices going up

[D4D]

When we have a US style housing bust we'll see who cries the most.

Won't happen to the same extent here as we have much more regulated banking system.

In my Parent's day the dream was to own your own house. Today the dream is to have at least 2 invesment properties...

[dazzler]

No, I don't think young people are greedy.  The old people who jack up house prices are the ones who are greedy.

When we have a US style housing bust we'll see who cries the most.

Well said Symon

If ever there has been a greedy generation its many of the baby boomers.

The - "Im spending my kids inheritence" crew.

[fuji]

Well said Symon

If ever there has been a greedy generation its many of the baby boomers.

The - "Im spending my kids inheritence" crew.

Won't be spending my inheritance, I am having too much fun, new truck, new camper woohoo!

[Symon]

Won't happen to the same extent here as we have much more regulated banking system.

In my Parent's day the dream was to own your own house. Today the dream is to have at least 2 invesment properties...

It appears that barneys would disagree with you.

My view is that any 'older' person who complains about the young should take a moment to reflect on why they are that way - perhaps it has something to do with the environment in which they were raised?  And who's fault is that, theirs or yours?

[Robbo]

Probably not a lot different to what it was in our day just that the property prices were a lot lesser value as were our incomes.
I think that finance is a lot easier to get today as you can get it on just the one mortgage and not two or three as we often had to, but i say Good on them, if they can afford to meet the finance requirements and repayments, then Go for it.
It certainly is an investment in their long term future as it was for us.

[D4D]

Our banks may be giving money out but they have to stockpile cash to cover it. It is an APRA requirement on their banking license. You may see a few finance companies go t!ts up but none of the big banks will.

We've had over 20 years of boom, never before seen in history. A lot of kids today have never lived hard and have no idea what the value of a $ is.

[GOLDIE]

Just wondering what you are all consider as a young person?.. What age are we talking about?

[D4D]

18-30

[Symon]

We've had over 20 years of boom, never before seen in history. A lot of kids today have never lived hard and have no idea what the value of a $ is.

A lot yes, but not the majority.  I know plenty of young battlers who are genuinely doing it tough.  If anything the only real change in the last 20 years is the gap between rich and poor has widened.

[Robbo]

I'm guessing early 20's to early 30's. I bought my first house at 21. Geeze, that was a while ago 

[Nomad]

Won't happen to the same extent here as we have much more regulated banking system.

In my Parent's day the dream was to own your own house. Today the dream is to have at least 2 invesment properties...

We also don't have non recourse loans which are common in the US. Why pay your 250k mortgage when the house next door is the same and for sale for 25k??

That leads to the geniuses in banks like lehman brothers selling massive portfolios, of these non recourse loans to other banks to off load their bad policies which led to the GFC..................................so much for industry regulation and government oversight...................

[Ricklanga]

Banks once required you to have something like a 20% deposit before they would even consider giving you a loan. These days, they will loan greater amounts of money even without a deposit.

When we decided to buy our house, we saved a pretty decent deposit in a very short time. Our bank would not loan us the money based on our deposit as we did not have a good enough savings history. Instead, they offered us a 100% loan. Go figure. Then, shortly after getting into our mortgage, we decided to switch our credit card over to our current bank. We did it on line & it was approved immediately. I was a little concerned as we were not given the opportunity to select a credit limit so I rang the bank the following morning & was told I had a $20,000 limit. I had them change it down to $1000. I had just taken on the biggest debt of my life (the mortgage) & been given a $20,000 credit card without even speaking to a bank employee.

I think banks these days hand out money a little too easily & therefore there will always be those who will borrow more than they probably should & getting into serious financial trouble when something unforeseen, such as unemployment or health problems, occur.

--
Richard.

[barneys]

anyway why shouldn't baby boomers spend there kids inheritance

[briann532]

I'm not greedy.......
I just want everything and I want it now.

Oh bugger, hang on. I'm losing this argument. I'm not YOUNG.............

[Ricklanga]

anyway why shouldn't baby boomers spend there kids inheritance

It's only an inheritance once your dead and I don't intend to stop living until then I've done my best to give my kids a good start in life, but ultimately the rest is up to them. Once I'm gone they're more than welcome to what is left.

--
Richard.

[Robbo]

It's only an inheritance once your dead and I don't intend to stop living until then I've done my best to give my kids a good start in life, but ultimately the rest is up to them. Once I'm gone they're more than welcome to what is left.

--
Richard.

Well said Richard, many of us baby boomers gave our kids a kick start in life, in our case it was a good deposit to put towards their first home as it was someting that our parents were'nt able to afford for us and things were a lot easier financially for us in the 70's so our inheritance to them will only be whats left when we are gone. 

[Doug.b]

I built a house about 9 years ago and to built the same house now has only increased about 25% to build, on the other hand land has increased 300% to buy.
As the population grows in the cities so does the price of land, the governments try stop the urban sprawl so they don't have to keep building infrastructures further out.

[toeball]

anyway why shouldn't baby boomers spend there kids inheritance

My parents can spend what they want, but if they leave me a bill there will be trouble!!!

[HEM19X]

Banks once required you to have something like a 20% deposit before they would even consider giving you a loan. These days, they will loan greater amounts of money even without a deposit.

When we decided to buy our house, we saved a pretty decent deposit in a very short time. Our bank would not loan us the money based on our deposit as we did not have a good enough savings history. Instead, they offered us a 100% loan. Go figure. Then, shortly after getting into our mortgage, we decided to switch our credit card over to our current bank. We did it on line & it was approved immediately. I was a little concerned as we were not given the opportunity to select a credit limit so I rang the bank the following morning & was told I had a $20,000 limit. I had them change it down to $1000. I had just taken on the biggest debt of my life (the mortgage) & been given a $20,000 credit card without even speaking to a bank employee.

I think banks these days hand out money a little too easily & therefore there will always be those who will borrow more than they probably should & getting into serious financial trouble when something unforeseen, such as unemployment or health problems, occur.

--
Richard.

Richard, while the banks did lend 100% - 105% in the heady days up to 2008/9, those days are well & truely gone [thank goodness].

Now any loan exceeding 80% LVR [Loan to Valuation Ratio] are Mortgage Insured & Mortgage Insurer's are very strict on what they will accept in regards to savings history, employment stability & even what area the house is in. F/I's [Banks, Building Societies, Credit Unions] all have their Loan portifolios regularily Stress Tested to minimise the possibility of a US style situation.

That said, many many younger people extend themselves too far when buying a home, it's usually not the Home Loan that is the start of the problem, it's the 3 or 4 Maxxed out credit cards & a couple of personal loans [usually to buy all the "good"stuff inside the house] that starts the ball rolling.

I'm in no way suggesting that this is the case for all but it only takes one partner to have their hours reduced for there to be problems.

[Topender]

My parents can spend what they want, but if they leave me a bill there will be trouble!!!

X2

Dave