100% agree @JohnnyM

How we, not Straw folks but the Australian government and people, let housing get to this stage is just beyond words. To be fair, a number of other western, first world countries have ended up in a similar place, but their house prices are showing signs of, or have already started to, decrease in value. But that can’t happen here, can it? Australia is different! Well, we probably are, in that the government will do everything it can, both Labor and Liberal, they are the same on this point, to stop house prices falling, as that would exile that party to opposition for a long period of time.

So while the maths says this can’t continue forever, we can expect to see prices going up, with policy settings designed to keep the party going for as long as possible. This ends badly, both economically and socially, and in the interim we will see a growing divide between those that have and those that don’t. We only need to look to Singapore, where housing policy, when done right, leads to outstanding outcomes for pretty much all citizens.

I also travel extensively, and here is a recent picture of me on Strawman from my place in Cambodia. Yes, Cambodia has a number of its own issues, most of which make Australia’s look like child’s play. What would this cost in Australia? Yet, Cambodians are, for the most part, much happier people than Australians, which is a noteworthy point in its own right, anyhow that is getting off topic.

Bottom line, policy got us into this mess, and we need strong policy leadership to get us out of it. But that won’t happen. The music may not stop for another 20 years, but when it does, and the maths just says it has to, it will be extremely ugly. Ironically, while those owning property will see values go down, with highly leveraged investors wiped out, most of the pain will fall on those without assets, due to the economic conditions and impacts that will follow. So a lack of policy action has kept this cohort out of owning a house, and yet many of those same people will end up being the most hurt by the fallout. What could possibly go wrong in a society that allows that?

Again, how did we let it get to this!

OK, rant over and yes, I do feel better for writing this :)

PS On a happier note, I have not forgotten about that 1 star meal @JohnnyM, will touch base when I next have a suitable layover in Singapore.

It’s a frustrating space and pretty much the reason I started looking at shares (or “buying into businesses” haha). Setting up compounding investments that I can contribute a little to now and hand over to the kids so they have some semblance of work-life balance.

I’m currently deep in the childcare trenches, where it’s actually cheaper for us to drop an entire income than to send two kids to daycare. After tax and childcare, the marginal gain from a second income is laughable. It makes no sense. To me, we, the communal, societal “we”, are stacking the odds against families at exactly the point when they need support most. That’s when careers are supposed to be taking off, when the compounding effect of pay rises, promotions, and progression matter most, and instead you’re forced to step back and risk being left behind.

Between the cost of raising kids and the cost of housing, it feels like the system is designed to keep you running on the hedonic treadmill of corporate carrots and government stick just to ultimately stand still. It feels a lot like Sisyphus pushing the rock up the hill for all eternity.

And outside of a major black swan event or governments actually brave enough to challenge the status quo, it seems the only option is to give in and play along.

Times like these make me think of George Carlin’s rant about wanting to live life backwards:

“I want to live my next life backwards.

You start out dead and get that out of the way.

Then you wake up in a nursing home feeling better every day.

Then you get kicked out for being too healthy.

You enjoy your retirement and collect your pension.

Then, when you start work, you get a gold watch on your first day.

You work forty years until you’re too young to work.

You get ready for high school — drink alcohol, party, and be generally promiscuous.

Then you go to grade school, become a kid, play, have no responsibilities.

Then you become a baby.

Then you spend your last nine months floating in luxurious spa-like conditions: central heating, room service, etc.

And finally … you finish off as an orgasm.

I rest my case.”

Hilarious @Jarrahman! I always thought aging sucks! Living life backyards is the way to go! :D

https://youtu.be/JWDeKXLZY9g?si=M-K7gd5jl40vOMyO

I blame this guy "equity maaaate!". A lot of boomers could have paid the morgage off three times over, but the hundred thousand dollar credit card (offset account) is just too tempting.

Good news is most people currently in their 20's and 30's cant afford a house. You can't retire with a morgage if you cant afford a home loan. The chart will self correct one way or another.

Needless to say, this thread is right up my alley :)

Tempted to launch into a long rant, but my bottom line take is that excessive and irresponsible credit creation really do have a lot to answer for.

Ripped off @Strawman , we are here for the rants ;)

Whilst I am an avid pod listener, especially for the rants, and I do have utmost respect for the wisenessness exhibited every day in this forum, isn't there a positive in having a mortgage as a " good debt" channel? It's one way to gain access to funds at a much lower rate, whilst investing funds in higher returning channels eg shares. Providing you manage it well you could practically live at next to no cost. Whilst having no or little means to reduce the mortgage once retired is obviously a bad outcome, there are also positive outcomes possible too.

100% @Scot1963, I'm just jealous and bitter.