Mortgages , high interest , and crocodile tears.

[j.sabourn]

Think I may have put this on before. First the crocodile tears which are amplified by the media and condoned by the government .
1. Why doesn’t whatever would be treasurer is in place at the time, use the UK as an example of what used to be , and that is whatever high interest rate at the time make the interest on that sum tax free , null and void. And people who buy high priced housing simply for profit as is or was when I was in the market for rental propertys was and is tax free on interest rates repairs etc. on rental property’s. ??? Cut out their claim.Seems to me the problem is not too hard to make such a change , it would also free up the market to the ordinary man in the street. Think the problem re accomodation is being over amplified for political purposes among other things. JS

[Des Taff Jenkins]

John.
The trouble in Aus is the short terms given by the banks for mortgages, the bloke on the ABC news who gives the market moves every night keeps saying In America the mortgages are all long term, hence there is no stress paying or waiting for the banks to foreclose on the loan or as they keep doing here lifting the interest rates..
I remember our first house in NZ we got a 3% Govt loan to buy our first house which cost five thousand quid, the Govt loan was for three thousand of that we had to take out a second mortgage, it was bloody tough going, so there is no change there.
Des

[j.sabourn]

What I’m trying to say Des in short . Those buying houses for rental purposes get tax relief on the interest they’re supposed to pay. Those buying houses to live in get no tax relief. Those buying rental houses get pats on the head for supplying accomodation , those buying a house to live in don’t get nutting . A matter of supplying houses to the so called needy ? Which successive governments haven’t supplied in the first place. JS.

[Les Woodard]

Bill Shorten was all for that John when he went to the election and Morrison ridiculed it, negative gearing, franking credits, reduced capital gains and a swathe of other stuff. That is why this current mob are gun shy about talking about exactly what you are on about. All this would have been done if only Bob Brown did not take that greens mob on a march to Queensland against the Adani mine proposal. That got us three years of being led by a con merchant.

[happy daze john in oz]

On the other hand, businesses get reduced taxes and concessions, owning a house to rent out is in a similar vein.

Many say the gov should provide me with a house, but there is nothing in the constitution to say that.
Some expect the gov to do every thing for them.

But interest rates are now very low, back in the early 90's we were paying some 18% interest.

Many want to live in the leafy suburbs where you need a Champagne style salary to pay the mortgage, but many who wish to do so are only on Beer salary.

Plenty of reasonable houses in the outer suburbs and many move there, but the 'crocodile tear' brigade are still with us and I guess always will be.

[Johnny Kieran]

Mortgage rates will always go up and down. The banks are in the business of making money, that's all. When rates are high, people don't borrow so much, then the banks drop the rates to entice more borrowing. When enough people have gone into a reasonable debt, it's time for the banks to cash in, and push up the rates. It's a never ending circle, gone on since borrowing was invented.
We had a reasonable rate of about 6% until the banks won the election to get the Tories in, and immediately they dropped the rate to next to 0%. This lasted for about 14 years, enticing home buyers to get into the spinning wheel. The rates were never so low in my lifetime, but when they went up to 5 or 6% it created the end of the world for some.
God know how we survived when rates were 15% or more, but we did, and that was when the kids were young, and most mums staying home to look after them. How times change?

[James Curry]

The highest period of interest rates was in the late 1970s, when the government were fighting high inflation caused by oil prices and rising wages. Interest rates were also increased to 15% at the beginning of the 1990s when the UK was trying to keep the value of Pound fixed in the ERM and reduce inflation from the Lawson boom.
Another period when the govermnet of the day covered themselves in glory (not)

The mortgage market took off and house prices flew. At the start of the 70s the average house price was £4,378.

The biggest five-year increase occurred between 1985 to 1990, where average house prices increased by 109%, reaching [B]£58,250.[

As of April 2024, the average house price in the UK is £281,373, and the index stands at 147.6.

Like most of us when we bought our first homes we could only borrow 2.5 times your annual income and I am not 100% sure but it was only one income and not a joint income as it is now.

I think today you can get as high as a 90% as long as you have a 10% deposit.

The problem is most will take out a fixed term mortgage which will be perhaps for 2 maybe 3 years. That is when the merde hits the fan especially lately as interest rates have gone up and up.

My son lives in France.
French mortgage rates can be fixed for the entire term of the loan. This provides stability and security for both the financial system and property market. Unlike some other foreign mortgages, full-term fixed-rate mortgages are common in France.

My son has a fixed rate mortgage for the term of the loan 25 years. It is fixed at 2.0%

[Johnny Kieran]

I think wages were better in those days, compared to the cost of living. The unions were stronger and the fatcats not quite so greedy as they are today, there were not the expensive living styles either.
Of course all this was before the EU was invented, and UK wages were driven down to level EU workers up.

[James Curry]

Johnny , remember the TV series auf wiedersehen Pet. Yes it was a comedy but truth be told a lot of construction workers did seek employment in Germany, pretty sure it was not because the wages were lower in the EU.
I was foreign flag for years and the only time I earned serious money was when working on German or Danish owned or managed vessels.
I ended up for several years sub contracting for the German engine builders MAK, Globe trotting carrying out rebuilds on behalf of MAK and later Wartsila engines. Certainly paid very well indeed.

[Des Taff Jenkins]

Maybe Hitler was right when he said a Thousand year Reich, with France in chaos white flags up everywhere and a Von running the EU. who knows what will happen next. Watched the Labour? leader on TV a bit limp wristed I thought.
Des
Des