David Koch, the former Sunrise host and current economic director for comparison website Compare the Market, has pointed out something older Australiansmay not want to hear.

He has explained that younger Australians bear the brunt of soaring interest rates and inflation while their older counterparts remain largely unaffected.

The Australian housing market has been a hot topic of discussion for years, with prices skyrocketing and making it increasingly difficult for younger generations to enter the property market.

This issue has been exacerbated by the recent rise in interest rates, which according to Koch, has hit young borrowers the hardest.

It has been reported that younger generations have a hard time buying homes. Credit: Freepik

According to data from Compare the Market, homeowners who purchased property at the peak of the market in early 2022 are now finding themselves in a worse financial position each month compared to those who bought it three years earlier.

For instance, a Sydney homebuyer who purchased a property at the average price of $1.12 million in February 2022 and locked in a fixed rate of 2.2 per cent would now face minimum monthly repayments of $2,247 more than their current payment.

In contrast, homeowners who bought at the median price of about $780,000 in April 2019 on the same fixed rate have seen their repayments rise just $1,576 a month.

This means they are better off by $671 every month, or a total of $8,052 a year.

Furthermore, those who bought before the pandemic have benefited from a rise in equity as property prices have significantly increased over the past four years.

Koch has described this situation as a 'tough pill' for young Aussies who have not had time to save up.

'If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you've now been lumped with the short end of the stick,' Koch said.

'Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years.’

'A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation.'

A 2023 report from CommBank iQ found that spending among Australians aged over 35 appears to be fuelling Australia's inflation crisis as younger generations are forced to cut back on essentials.

Older generations were said to be going on holidays and dining out more often.

On the other hand, young Aussies were battling higher rents and mortgage repayments, reducing their spending to cope with the worst cost of living crisis in a generation.

Younger Aussies, particularly those aged 25 to 29, reportedly reduced their yearly spending.

Koch describes the current situation as a ‘tough pill’ for young Aussies. Credit: Freepik

Koch said, ‘It's time policy-makers should be asking: how could the pressure be more evenly spread?’

Many older homeowners have stressed that interest rates for home loans back then weren't as tough when looking at history.

In the late 1980s to early 1990s, home loan rates were a high 17 per cent, but today's variable rates are lower at six per cent.

They argued that the sacrifices young adults make now are incomparable to what they and past generations had to do.

However, Koch said new homebuyers are in a tougher spot than before.

For him, house prices had gone way up compared to what people earn, and this was happening faster than wages were growing.

'Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000—ten times more expensive,' he said.

He explained that in the 1980s, the average salary was $19,000. In 2023, it was $94,000.

'So in the 80s, the price of a house was four times the average person's income,' he said.

'In 2023, it's eight times the average Aussie salary.'

He has also urged mortgage holders with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible.

‘We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal,' Koch said.

'When every dollar counts, 2024 should be the year of the new lender.'

The struggles of young Australians in the housing market are real and palpable.

Mira Almasri, a 35-year-old single mother, rents a one-bedroom apartment with her two children, aged nine and 14 in Mosman on Sydney's well-heeled north shore for $600 a week.

She has given up all hope of owning a Sydney home, stating, 'It's impossible to buy in Sydney.'

'Even if you earn loads of money, it's still hard. All my friends who have bought houses in the last two years say they are not happy at all because they are paying high-interest rates.'

Jacob Burrows, 22, an electrician from Perth, Western Australia, hopes to buy a property within the next 12 months despite interest rates being at their highest since 2012.

He has done a lot of research, including reading a book about a man who owned 30 properties by the age of 30.

However, he acknowledged that 'it's fairly hard at the moment because everything is so expensive’.

‘A couple of years ago, I wanted to try and understand the market to appreciate what's involved in buying a house,’ Burrows added.

‘I spent a year or so learning the housing market, and now I'm going to try to look for cheaper houses instead of buying one big one so that I can have a smaller deposit.'

Still, it’s not all rosy for older Australians.

On the other side of the spectrum, a report by Ageing in a Housing Crisis showed that having safe, secure, and affordable housing for older people has become increasingly difficult.

More older people also lived in marginal housing, as analysed by the Australian Bureau of Statistics census data and homelessness estimates.

The increase in housing costs, declining rates of home ownership, carrying mortgage debt into retirement, uncertainty in private rental arrangements, and the worsening shortage of social housing all indicate a widespread problem of housing insecurity.

This issue of insecure or unstable housing impacts people of all age groups. However, for older individuals, the challenges are exacerbated by factors such as limited income-earning potential, growing frailty, illness, caring responsibilities, an increasing need for at-home support, and age-related discrimination.

Key Takeaways

• David Koch delivered a stark message to older generations, pointing out how young Australians face struggles due to high interest rates and inflation.
• Research by Compare the Market indicates that recent homebuyers who purchased at market peak are financially worse off than those who bought homes several years prior.
• Older Australian homeowners have generally been cushioned from recent rate rises, having benefitted from increased property equity.
• Koch suggested that policymakers should consider ways to distribute economic pressures more equitably across generations.

Members, what are your thoughts on this issue? Share them with us in the comments below.

 

[Bill MacL]

Always amazes me how the "better off" people generalise that every one is in the same boat. You stay in your ocean liner Kochie and try not to run over any canoes.

 

[Hmee]

These problems are not the fault of the “older” generation. I can’t see improvements in continually increasing interest rates. These increases are having a devastating effect on the younger generation in paying off their homes. I recommend the Reserve Bank and Michelle Bullock’s team let it alone for a while.

 

[Robbo3006]

David Koch, the former Sunrise host and current economic director for comparison website Compare the Market, has pointed out something older Australiansmay not want to hear.

He has explained that younger Australians bear the brunt of soaring interest rates and inflation while their older counterparts remain largely unaffected.

The Australian housing market has been a hot topic of discussion for years, with prices skyrocketing and making it increasingly difficult for younger generations to enter the property market.

This issue has been exacerbated by the recent rise in interest rates, which according to Koch, has hit young borrowers the hardest.

View attachment 38953

It has been reported that younger generations have a hard time buying homes. Credit: Freepik

According to data from Compare the Market, homeowners who purchased property at the peak of the market in early 2022 are now finding themselves in a worse financial position each month compared to those who bought it three years earlier.

For instance, a Sydney homebuyer who purchased a property at the average price of $1.12 million in February 2022 and locked in a fixed rate of 2.2 per cent would now face minimum monthly repayments of $2,247 more than their current payment.

In contrast, homeowners who bought at the median price of about $780,000 in April 2019 on the same fixed rate have seen their repayments rise just $1,576 a month.

This means they are better off by $671 every month, or a total of $8,052 a year.

Furthermore, those who bought before the pandemic have benefited from a rise in equity as property prices have significantly increased over the past four years.

Koch has described this situation as a 'tough pill' for young Aussies who have not had time to save up.

'If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you've now been lumped with the short end of the stick,' Koch said.

'Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years.’

'A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation.'

A 2023 report from CommBank iQ found that spending among Australians aged over 35 appears to be fuelling Australia's inflation crisis as younger generations are forced to cut back on essentials.

Older generations were said to be going on holidays and dining out more often.

On the other hand, young Aussies were battling higher rents and mortgage repayments, reducing their spending to cope with the worst cost of living crisis in a generation.

Younger Aussies, particularly those aged 25 to 29, reportedly reduced their yearly spending.

View attachment 38954

Koch describes the current situation as a ‘tough pill’ for young Aussies. Credit: Freepik

Koch said, ‘It's time policy-makers should be asking: how could the pressure be more evenly spread?’

Many older homeowners have stressed that interest rates for home loans back then weren't as tough when looking at history.

In the late 1980s to early 1990s, home loan rates were a high 17 per cent, but today's variable rates are lower at six per cent.

They argued that the sacrifices young adults make now are incomparable to what they and past generations had to do.

However, Koch said new homebuyers are in a tougher spot than before.

For him, house prices had gone way up compared to what people earn, and this was happening faster than wages were growing.

'Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000—ten times more expensive,' he said.

He explained that in the 1980s, the average salary was $19,000. In 2023, it was $94,000.

'So in the 80s, the price of a house was four times the average person's income,' he said.

'In 2023, it's eight times the average Aussie salary.'

He has also urged mortgage holders with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible.

‘We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal,' Koch said.

'When every dollar counts, 2024 should be the year of the new lender.'

The struggles of young Australians in the housing market are real and palpable.

Mira Almasri, a 35-year-old single mother, rents a one-bedroom apartment with her two children, aged nine and 14 in Mosman on Sydney's well-heeled north shore for $600 a week.

She has given up all hope of owning a Sydney home, stating, 'It's impossible to buy in Sydney.'

'Even if you earn loads of money, it's still hard. All my friends who have bought houses in the last two years say they are not happy at all because they are paying high-interest rates.'

Jacob Burrows, 22, an electrician from Perth, Western Australia, hopes to buy a property within the next 12 months despite interest rates being at their highest since 2012.

He has done a lot of research, including reading a book about a man who owned 30 properties by the age of 30.

However, he acknowledged that 'it's fairly hard at the moment because everything is so expensive’.

‘A couple of years ago, I wanted to try and understand the market to appreciate what's involved in buying a house,’ Burrows added.

‘I spent a year or so learning the housing market, and now I'm going to try to look for cheaper houses instead of buying one big one so that I can have a smaller deposit.'

Still, it’s not all rosy for older Australians.

On the other side of the spectrum, a report by Ageing in a Housing Crisis showed that having safe, secure, and affordable housing for older people has become increasingly difficult.

More older people also lived in marginal housing, as analysed by the Australian Bureau of Statistics census data and homelessness estimates.

The increase in housing costs, declining rates of home ownership, carrying mortgage debt into retirement, uncertainty in private rental arrangements, and the worsening shortage of social housing all indicate a widespread problem of housing insecurity.

This issue of insecure or unstable housing impacts people of all age groups. However, for older individuals, the challenges are exacerbated by factors such as limited income-earning potential, growing frailty, illness, caring responsibilities, an increasing need for at-home support, and age-related discrimination.

Key Takeaways

• David Koch delivered a stark message to older generations, pointing out how young Australians face struggles due to high interest rates and inflation.
• Research by Compare the Market indicates that recent homebuyers who purchased at market peak are financially worse off than those who bought homes several years prior.
• Older Australian homeowners have generally been cushioned from recent rate rises, having benefitted from increased property equity.
• Koch suggested that policymakers should consider ways to distribute economic pressures more equitably across generations.

Members, what are your thoughts on this issue? Share your thoughts with us in the comments below.

I used to like you kochie but now you're making the divide between young and older Aussies even worse. It's the fukn governments fault not us oldies, sending money to countries that hate us without our permission, who built the infrastructure that made education free, roads and medical free, now the government is trying to steal that too, where did the pension fund money go? Into revenue, then disappeared, get it right next time, you are making scapegoats out of the hardest working generations of the past.

 

[BruceC]

David Koch, the former Sunrise host and current economic director for comparison website Compare the Market, has pointed out something older Australiansmay not want to hear.

He has explained that younger Australians bear the brunt of soaring interest rates and inflation while their older counterparts remain largely unaffected.

The Australian housing market has been a hot topic of discussion for years, with prices skyrocketing and making it increasingly difficult for younger generations to enter the property market.

This issue has been exacerbated by the recent rise in interest rates, which according to Koch, has hit young borrowers the hardest.

View attachment 38953

It has been reported that younger generations have a hard time buying homes. Credit: Freepik

According to data from Compare the Market, homeowners who purchased property at the peak of the market in early 2022 are now finding themselves in a worse financial position each month compared to those who bought it three years earlier.

For instance, a Sydney homebuyer who purchased a property at the average price of $1.12 million in February 2022 and locked in a fixed rate of 2.2 per cent would now face minimum monthly repayments of $2,247 more than their current payment.

In contrast, homeowners who bought at the median price of about $780,000 in April 2019 on the same fixed rate have seen their repayments rise just $1,576 a month.

This means they are better off by $671 every month, or a total of $8,052 a year.

Furthermore, those who bought before the pandemic have benefited from a rise in equity as property prices have significantly increased over the past four years.

Koch has described this situation as a 'tough pill' for young Aussies who have not had time to save up.

'If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you've now been lumped with the short end of the stick,' Koch said.

'Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years.’

'A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation.'

A 2023 report from CommBank iQ found that spending among Australians aged over 35 appears to be fuelling Australia's inflation crisis as younger generations are forced to cut back on essentials.

Older generations were said to be going on holidays and dining out more often.

On the other hand, young Aussies were battling higher rents and mortgage repayments, reducing their spending to cope with the worst cost of living crisis in a generation.

Younger Aussies, particularly those aged 25 to 29, reportedly reduced their yearly spending.

View attachment 38954

Koch describes the current situation as a ‘tough pill’ for young Aussies. Credit: Freepik

Koch said, ‘It's time policy-makers should be asking: how could the pressure be more evenly spread?’

Many older homeowners have stressed that interest rates for home loans back then weren't as tough when looking at history.

In the late 1980s to early 1990s, home loan rates were a high 17 per cent, but today's variable rates are lower at six per cent.

They argued that the sacrifices young adults make now are incomparable to what they and past generations had to do.

However, Koch said new homebuyers are in a tougher spot than before.

For him, house prices had gone way up compared to what people earn, and this was happening faster than wages were growing.

'Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000—ten times more expensive,' he said.

He explained that in the 1980s, the average salary was $19,000. In 2023, it was $94,000.

'So in the 80s, the price of a house was four times the average person's income,' he said.

'In 2023, it's eight times the average Aussie salary.'

He has also urged mortgage holders with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible.

‘We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal,' Koch said.

'When every dollar counts, 2024 should be the year of the new lender.'

The struggles of young Australians in the housing market are real and palpable.

Mira Almasri, a 35-year-old single mother, rents a one-bedroom apartment with her two children, aged nine and 14 in Mosman on Sydney's well-heeled north shore for $600 a week.

She has given up all hope of owning a Sydney home, stating, 'It's impossible to buy in Sydney.'

'Even if you earn loads of money, it's still hard. All my friends who have bought houses in the last two years say they are not happy at all because they are paying high-interest rates.'

Jacob Burrows, 22, an electrician from Perth, Western Australia, hopes to buy a property within the next 12 months despite interest rates being at their highest since 2012.

He has done a lot of research, including reading a book about a man who owned 30 properties by the age of 30.

However, he acknowledged that 'it's fairly hard at the moment because everything is so expensive’.

‘A couple of years ago, I wanted to try and understand the market to appreciate what's involved in buying a house,’ Burrows added.

‘I spent a year or so learning the housing market, and now I'm going to try to look for cheaper houses instead of buying one big one so that I can have a smaller deposit.'

Still, it’s not all rosy for older Australians.

On the other side of the spectrum, a report by Ageing in a Housing Crisis showed that having safe, secure, and affordable housing for older people has become increasingly difficult.

More older people also lived in marginal housing, as analysed by the Australian Bureau of Statistics census data and homelessness estimates.

The increase in housing costs, declining rates of home ownership, carrying mortgage debt into retirement, uncertainty in private rental arrangements, and the worsening shortage of social housing all indicate a widespread problem of housing insecurity.

This issue of insecure or unstable housing impacts people of all age groups. However, for older individuals, the challenges are exacerbated by factors such as limited income-earning potential, growing frailty, illness, caring responsibilities, an increasing need for at-home support, and age-related discrimination.

Key Takeaways

• David Koch delivered a stark message to older generations, pointing out how young Australians face struggles due to high interest rates and inflation.
• Research by Compare the Market indicates that recent homebuyers who purchased at market peak are financially worse off than those who bought homes several years prior.
• Older Australian homeowners have generally been cushioned from recent rate rises, having benefitted from increased property equity.
• Koch suggested that policymakers should consider ways to distribute economic pressures more equitably across generations.

Members, what are your thoughts on this issue? Share your thoughts with us in the comments below.

Damn.
Thought we had hear d the last of this clown!
Who really cares what Koch thinks?

 

[Leenie]

I used to like you kochie but now you're making the divide between young and older Aussies even worse. It's the fukn governments fault not us oldies, sending money to countries that hate us without our permission, who built the infrastructure that made education free, roads and medical free, now the government is trying to steal that too, where did the pension fund money go? Into revenue, then disappeared, get it right next time, you are making scapegoats out of the hardest working generations of the past.

I mentioned the pension fund disappearing recently as I believe our taxes covered the pension ,only greedy politicians couldn’t help themselves and raided it, the same will happen to the super just a matter of time , people need to revolt agai

 

[Leenie]

Damn.
Thought we had hear d the last of this clown!
Who really cares what Koch thinks?

He has a big opinion of himself ,EGO,like some others do.

 

[CathyB]

David Koch, the former Sunrise host and current economic director for comparison website Compare the Market, has pointed out something older Australiansmay not want to hear.

He has explained that younger Australians bear the brunt of soaring interest rates and inflation while their older counterparts remain largely unaffected.

The Australian housing market has been a hot topic of discussion for years, with prices skyrocketing and making it increasingly difficult for younger generations to enter the property market.

This issue has been exacerbated by the recent rise in interest rates, which according to Koch, has hit young borrowers the hardest.

View attachment 38953

It has been reported that younger generations have a hard time buying homes. Credit: Freepik

According to data from Compare the Market, homeowners who purchased property at the peak of the market in early 2022 are now finding themselves in a worse financial position each month compared to those who bought it three years earlier.

For instance, a Sydney homebuyer who purchased a property at the average price of $1.12 million in February 2022 and locked in a fixed rate of 2.2 per cent would now face minimum monthly repayments of $2,247 more than their current payment.

In contrast, homeowners who bought at the median price of about $780,000 in April 2019 on the same fixed rate have seen their repayments rise just $1,576 a month.

This means they are better off by $671 every month, or a total of $8,052 a year.

Furthermore, those who bought before the pandemic have benefited from a rise in equity as property prices have significantly increased over the past four years.

Koch has described this situation as a 'tough pill' for young Aussies who have not had time to save up.

'If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you've now been lumped with the short end of the stick,' Koch said.

'Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years.’

'A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation.'

A 2023 report from CommBank iQ found that spending among Australians aged over 35 appears to be fuelling Australia's inflation crisis as younger generations are forced to cut back on essentials.

Older generations were said to be going on holidays and dining out more often.

On the other hand, young Aussies were battling higher rents and mortgage repayments, reducing their spending to cope with the worst cost of living crisis in a generation.

Younger Aussies, particularly those aged 25 to 29, reportedly reduced their yearly spending.

View attachment 38954

Koch describes the current situation as a ‘tough pill’ for young Aussies. Credit: Freepik

Koch said, ‘It's time policy-makers should be asking: how could the pressure be more evenly spread?’

Many older homeowners have stressed that interest rates for home loans back then weren't as tough when looking at history.

In the late 1980s to early 1990s, home loan rates were a high 17 per cent, but today's variable rates are lower at six per cent.

They argued that the sacrifices young adults make now are incomparable to what they and past generations had to do.

However, Koch said new homebuyers are in a tougher spot than before.

For him, house prices had gone way up compared to what people earn, and this was happening faster than wages were growing.

'Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000—ten times more expensive,' he said.

He explained that in the 1980s, the average salary was $19,000. In 2023, it was $94,000.

'So in the 80s, the price of a house was four times the average person's income,' he said.

'In 2023, it's eight times the average Aussie salary.'

He has also urged mortgage holders with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible.

‘We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal,' Koch said.

'When every dollar counts, 2024 should be the year of the new lender.'

The struggles of young Australians in the housing market are real and palpable.

Mira Almasri, a 35-year-old single mother, rents a one-bedroom apartment with her two children, aged nine and 14 in Mosman on Sydney's well-heeled north shore for $600 a week.

She has given up all hope of owning a Sydney home, stating, 'It's impossible to buy in Sydney.'

'Even if you earn loads of money, it's still hard. All my friends who have bought houses in the last two years say they are not happy at all because they are paying high-interest rates.'

Jacob Burrows, 22, an electrician from Perth, Western Australia, hopes to buy a property within the next 12 months despite interest rates being at their highest since 2012.

He has done a lot of research, including reading a book about a man who owned 30 properties by the age of 30.

However, he acknowledged that 'it's fairly hard at the moment because everything is so expensive’.

‘A couple of years ago, I wanted to try and understand the market to appreciate what's involved in buying a house,’ Burrows added.

‘I spent a year or so learning the housing market, and now I'm going to try to look for cheaper houses instead of buying one big one so that I can have a smaller deposit.'

Still, it’s not all rosy for older Australians.

On the other side of the spectrum, a report by Ageing in a Housing Crisis showed that having safe, secure, and affordable housing for older people has become increasingly difficult.

More older people also lived in marginal housing, as analysed by the Australian Bureau of Statistics census data and homelessness estimates.

The increase in housing costs, declining rates of home ownership, carrying mortgage debt into retirement, uncertainty in private rental arrangements, and the worsening shortage of social housing all indicate a widespread problem of housing insecurity.

This issue of insecure or unstable housing impacts people of all age groups. However, for older individuals, the challenges are exacerbated by factors such as limited income-earning potential, growing frailty, illness, caring responsibilities, an increasing need for at-home support, and age-related discrimination.

Key Takeaways

• David Koch delivered a stark message to older generations, pointing out how young Australians face struggles due to high interest rates and inflation.
• Research by Compare the Market indicates that recent homebuyers who purchased at market peak are financially worse off than those who bought homes several years prior.
• Older Australian homeowners have generally been cushioned from recent rate rises, having benefitted from increased property equity.
• Koch suggested that policymakers should consider ways to distribute economic pressures more equitably across generations.

Members, what are your thoughts on this issue? Share your thoughts with us in the comments below.

I'm sick of the finger pointing. I live in an area where despite increased property prices, there will not be enough to move or downsize anywhere should we want to sell. I have worked my whole adult life and even with 5 children was required to pay for everything medical without any financial assistance. I had no choice but to continue work while paying for a mortgage with rates at 17 percent plus. Because I worked, my children did not get any of the financial assistance that others received when they turned 16 and they were unable to get Austudy despite living away from home. Any family allowances did not come our way because I worked. So now I am retired with no mortgage and on a superannuation pension and still we struggle as my pension is the only real income. I see young couples struggle and I understand their pain. I cannot see for the life of me how they are expected to pay for million dollar homes. How is that possible? The finger pointing should be aimed at those who have benefitted the most - the banks, big corporations with huge profits, supermarkets and politicians and of course, greed.

 

[NotNats]

I wonder what Kochy Clown lives off per month. I 1 to 10 it more than I make per month or year.

 

[CathyB]

He has a big opinion of himself ,EGO,like some others do.

clown is an apt terminology for this joker

 

[oilsfromoz]

What an absolute d***head that Koch is! Sure, interest rates have gone through the roof but this "younger" lot who have property that they rent out are covering themselves with rent increases. That's why many older people are struggling. In the last two years my rent has moved from $180 to $250 a week and the paltry pension increases don't compensate.

 

[Monks]

Going on his comment 17% interest rate to buy a house at $70,000.00 ?? what a joke he really is get it right when I borrowed $50,000.00 to buy my block of land it was at 17.5% interest rate then I had to build a house on it and that was about 37 years ago now it is all payed off and at 70 years of age thank god for that, not to sure where this money bag idiot is coming from this is the man that earns well over a 100,000.00 per year and has done so for many years so not to sure where he gets his figers from but it sure is not the fault of the older gen to what is happening David get it right and donot blame us for it

 

[Knell]

Was he blaming or just stating statistical data?

 

[LeahI]

These problems are not the fault of the “older” generation. I can’t see improvements in continually increasing interest rates. These increases are having a devastating effect on the younger generation in paying off their homes. I recommend the Reserve Bank and Michelle Bullock’s team let it alone for a while.

I absolutely agree. If raising interest rates is the only way the RBA knows to solve inflation, then just stop doing it because it's not working.
Leave rates alone, the banks are making enough money, people's spending will change, supermarket prices will level (coz they're not obsessed with high prices to get their profits). The dust will settle.

 

[Catherines]

Damn.
Thought we had hear d the last of this clown!
Who really cares what Koch thinks?

Precisely BruceC! I never liked the man.

 

[Simply_Susan]

I mentioned the pension fund disappearing recently as I believe our taxes covered the pension ,only greedy politicians couldn’t help themselves and raided it, the same will happen to the super just a matter of time , people need to revolt agai

BTW it was another Labor Govt which did it, got rid of the pension fund.

 

[Col@45]

David Koch, the former Sunrise host and current economic director for comparison website Compare the Market, has pointed out something older Australiansmay not want to hear.

He has explained that younger Australians bear the brunt of soaring interest rates and inflation while their older counterparts remain largely unaffected.

The Australian housing market has been a hot topic of discussion for years, with prices skyrocketing and making it increasingly difficult for younger generations to enter the property market.

This issue has been exacerbated by the recent rise in interest rates, which according to Koch, has hit young borrowers the hardest.

View attachment 38953

It has been reported that younger generations have a hard time buying homes. Credit: Freepik

According to data from Compare the Market, homeowners who purchased property at the peak of the market in early 2022 are now finding themselves in a worse financial position each month compared to those who bought it three years earlier.

For instance, a Sydney homebuyer who purchased a property at the average price of $1.12 million in February 2022 and locked in a fixed rate of 2.2 per cent would now face minimum monthly repayments of $2,247 more than their current payment.

In contrast, homeowners who bought at the median price of about $780,000 in April 2019 on the same fixed rate have seen their repayments rise just $1,576 a month.

This means they are better off by $671 every month, or a total of $8,052 a year.

Furthermore, those who bought before the pandemic have benefited from a rise in equity as property prices have significantly increased over the past four years.

Koch has described this situation as a 'tough pill' for young Aussies who have not had time to save up.

'If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you've now been lumped with the short end of the stick,' Koch said.

'Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years.’

'A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation.'

A 2023 report from CommBank iQ found that spending among Australians aged over 35 appears to be fuelling Australia's inflation crisis as younger generations are forced to cut back on essentials.

Older generations were said to be going on holidays and dining out more often.

On the other hand, young Aussies were battling higher rents and mortgage repayments, reducing their spending to cope with the worst cost of living crisis in a generation.

Younger Aussies, particularly those aged 25 to 29, reportedly reduced their yearly spending.

View attachment 38954

Koch describes the current situation as a ‘tough pill’ for young Aussies. Credit: Freepik

Koch said, ‘It's time policy-makers should be asking: how could the pressure be more evenly spread?’

Many older homeowners have stressed that interest rates for home loans back then weren't as tough when looking at history.

In the late 1980s to early 1990s, home loan rates were a high 17 per cent, but today's variable rates are lower at six per cent.

They argued that the sacrifices young adults make now are incomparable to what they and past generations had to do.

However, Koch said new homebuyers are in a tougher spot than before.

For him, house prices had gone way up compared to what people earn, and this was happening faster than wages were growing.

'Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000—ten times more expensive,' he said.

He explained that in the 1980s, the average salary was $19,000. In 2023, it was $94,000.

'So in the 80s, the price of a house was four times the average person's income,' he said.

'In 2023, it's eight times the average Aussie salary.'

He has also urged mortgage holders with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible.

‘We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal,' Koch said.

'When every dollar counts, 2024 should be the year of the new lender.'

The struggles of young Australians in the housing market are real and palpable.

Mira Almasri, a 35-year-old single mother, rents a one-bedroom apartment with her two children, aged nine and 14 in Mosman on Sydney's well-heeled north shore for $600 a week.

She has given up all hope of owning a Sydney home, stating, 'It's impossible to buy in Sydney.'

'Even if you earn loads of money, it's still hard. All my friends who have bought houses in the last two years say they are not happy at all because they are paying high-interest rates.'

Jacob Burrows, 22, an electrician from Perth, Western Australia, hopes to buy a property within the next 12 months despite interest rates being at their highest since 2012.

He has done a lot of research, including reading a book about a man who owned 30 properties by the age of 30.

However, he acknowledged that 'it's fairly hard at the moment because everything is so expensive’.

‘A couple of years ago, I wanted to try and understand the market to appreciate what's involved in buying a house,’ Burrows added.

‘I spent a year or so learning the housing market, and now I'm going to try to look for cheaper houses instead of buying one big one so that I can have a smaller deposit.'

Still, it’s not all rosy for older Australians.

On the other side of the spectrum, a report by Ageing in a Housing Crisis showed that having safe, secure, and affordable housing for older people has become increasingly difficult.

More older people also lived in marginal housing, as analysed by the Australian Bureau of Statistics census data and homelessness estimates.

The increase in housing costs, declining rates of home ownership, carrying mortgage debt into retirement, uncertainty in private rental arrangements, and the worsening shortage of social housing all indicate a widespread problem of housing insecurity.

This issue of insecure or unstable housing impacts people of all age groups. However, for older individuals, the challenges are exacerbated by factors such as limited income-earning potential, growing frailty, illness, caring responsibilities, an increasing need for at-home support, and age-related discrimination.

Key Takeaways

• David Koch delivered a stark message to older generations, pointing out how young Australians face struggles due to high interest rates and inflation.
• Research by Compare the Market indicates that recent homebuyers who purchased at market peak are financially worse off than those who bought homes several years prior.
• Older Australian homeowners have generally been cushioned from recent rate rises, having benefitted from increased property equity.
• Koch suggested that policymakers should consider ways to distribute economic pressures more equitably across generations.

Members, what are your thoughts on this issue? Share your thoughts with us in the comments below.

Money hungry vultures the lot of them.....banks, supermarkets etc etc.
So much greed these days

 

[Beauty28]

David Koch, the former Sunrise host and current economic director for comparison website Compare the Market, has pointed out something older Australiansmay not want to hear.

He has explained that younger Australians bear the brunt of soaring interest rates and inflation while their older counterparts remain largely unaffected.

The Australian housing market has been a hot topic of discussion for years, with prices skyrocketing and making it increasingly difficult for younger generations to enter the property market.

This issue has been exacerbated by the recent rise in interest rates, which according to Koch, has hit young borrowers the hardest.

View attachment 38953

It has been reported that younger generations have a hard time buying homes. Credit: Freepik

According to data from Compare the Market, homeowners who purchased property at the peak of the market in early 2022 are now finding themselves in a worse financial position each month compared to those who bought it three years earlier.

For instance, a Sydney homebuyer who purchased a property at the average price of $1.12 million in February 2022 and locked in a fixed rate of 2.2 per cent would now face minimum monthly repayments of $2,247 more than their current payment.

In contrast, homeowners who bought at the median price of about $780,000 in April 2019 on the same fixed rate have seen their repayments rise just $1,576 a month.

This means they are better off by $671 every month, or a total of $8,052 a year.

Furthermore, those who bought before the pandemic have benefited from a rise in equity as property prices have significantly increased over the past four years.

Koch has described this situation as a 'tough pill' for young Aussies who have not had time to save up.

'If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you've now been lumped with the short end of the stick,' Koch said.

'Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years.’

'A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation.'

A 2023 report from CommBank iQ found that spending among Australians aged over 35 appears to be fuelling Australia's inflation crisis as younger generations are forced to cut back on essentials.

Older generations were said to be going on holidays and dining out more often.

On the other hand, young Aussies were battling higher rents and mortgage repayments, reducing their spending to cope with the worst cost of living crisis in a generation.

Younger Aussies, particularly those aged 25 to 29, reportedly reduced their yearly spending.

View attachment 38954

Koch describes the current situation as a ‘tough pill’ for young Aussies. Credit: Freepik

Koch said, ‘It's time policy-makers should be asking: how could the pressure be more evenly spread?’

Many older homeowners have stressed that interest rates for home loans back then weren't as tough when looking at history.

In the late 1980s to early 1990s, home loan rates were a high 17 per cent, but today's variable rates are lower at six per cent.

They argued that the sacrifices young adults make now are incomparable to what they and past generations had to do.

However, Koch said new homebuyers are in a tougher spot than before.

For him, house prices had gone way up compared to what people earn, and this was happening faster than wages were growing.

'Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000—ten times more expensive,' he said.

He explained that in the 1980s, the average salary was $19,000. In 2023, it was $94,000.

'So in the 80s, the price of a house was four times the average person's income,' he said.

'In 2023, it's eight times the average Aussie salary.'

He has also urged mortgage holders with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible.

‘We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal,' Koch said.

'When every dollar counts, 2024 should be the year of the new lender.'

The struggles of young Australians in the housing market are real and palpable.

Mira Almasri, a 35-year-old single mother, rents a one-bedroom apartment with her two children, aged nine and 14 in Mosman on Sydney's well-heeled north shore for $600 a week.

She has given up all hope of owning a Sydney home, stating, 'It's impossible to buy in Sydney.'

'Even if you earn loads of money, it's still hard. All my friends who have bought houses in the last two years say they are not happy at all because they are paying high-interest rates.'

Jacob Burrows, 22, an electrician from Perth, Western Australia, hopes to buy a property within the next 12 months despite interest rates being at their highest since 2012.

He has done a lot of research, including reading a book about a man who owned 30 properties by the age of 30.

However, he acknowledged that 'it's fairly hard at the moment because everything is so expensive’.

‘A couple of years ago, I wanted to try and understand the market to appreciate what's involved in buying a house,’ Burrows added.

‘I spent a year or so learning the housing market, and now I'm going to try to look for cheaper houses instead of buying one big one so that I can have a smaller deposit.'

Still, it’s not all rosy for older Australians.

On the other side of the spectrum, a report by Ageing in a Housing Crisis showed that having safe, secure, and affordable housing for older people has become increasingly difficult.

More older people also lived in marginal housing, as analysed by the Australian Bureau of Statistics census data and homelessness estimates.

The increase in housing costs, declining rates of home ownership, carrying mortgage debt into retirement, uncertainty in private rental arrangements, and the worsening shortage of social housing all indicate a widespread problem of housing insecurity.

This issue of insecure or unstable housing impacts people of all age groups. However, for older individuals, the challenges are exacerbated by factors such as limited income-earning potential, growing frailty, illness, caring responsibilities, an increasing need for at-home support, and age-related discrimination.

Key Takeaways

• David Koch delivered a stark message to older generations, pointing out how young Australians face struggles due to high interest rates and inflation.
• Research by Compare the Market indicates that recent homebuyers who purchased at market peak are financially worse off than those who bought homes several years prior.
• Older Australian homeowners have generally been cushioned from recent rate rises, having benefitted from increased property equity.
• Koch suggested that policymakers should consider ways to distribute economic pressures more equitably across generations.

Members, what are your thoughts on this issue? Share your thoughts with us in the comments below.

David Koch is inviting trouble between generations. You cannot go backwards and compare times as it was really hard in all eras. People like David Koch cause anger and blame at a generation that's all ready done the hard yards paid the price. Leave seniors alone.

 

[BenV]

David Koch, the former Sunrise host and current economic director for comparison website Compare the Market, has pointed out something older Australiansmay not want to hear.

He has explained that younger Australians bear the brunt of soaring interest rates and inflation while their older counterparts remain largely unaffected.

The Australian housing market has been a hot topic of discussion for years, with prices skyrocketing and making it increasingly difficult for younger generations to enter the property market.

This issue has been exacerbated by the recent rise in interest rates, which according to Koch, has hit young borrowers the hardest.

View attachment 38953

It has been reported that younger generations have a hard time buying homes. Credit: Freepik

According to data from Compare the Market, homeowners who purchased property at the peak of the market in early 2022 are now finding themselves in a worse financial position each month compared to those who bought it three years earlier.

For instance, a Sydney homebuyer who purchased a property at the average price of $1.12 million in February 2022 and locked in a fixed rate of 2.2 per cent would now face minimum monthly repayments of $2,247 more than their current payment.

In contrast, homeowners who bought at the median price of about $780,000 in April 2019 on the same fixed rate have seen their repayments rise just $1,576 a month.

This means they are better off by $671 every month, or a total of $8,052 a year.

Furthermore, those who bought before the pandemic have benefited from a rise in equity as property prices have significantly increased over the past four years.

Koch has described this situation as a 'tough pill' for young Aussies who have not had time to save up.

'If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you've now been lumped with the short end of the stick,' Koch said.

'Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years.’

'A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation.'

A 2023 report from CommBank iQ found that spending among Australians aged over 35 appears to be fuelling Australia's inflation crisis as younger generations are forced to cut back on essentials.

Older generations were said to be going on holidays and dining out more often.

On the other hand, young Aussies were battling higher rents and mortgage repayments, reducing their spending to cope with the worst cost of living crisis in a generation.

Younger Aussies, particularly those aged 25 to 29, reportedly reduced their yearly spending.

View attachment 38954

Koch describes the current situation as a ‘tough pill’ for young Aussies. Credit: Freepik

Koch said, ‘It's time policy-makers should be asking: how could the pressure be more evenly spread?’

Many older homeowners have stressed that interest rates for home loans back then weren't as tough when looking at history.

In the late 1980s to early 1990s, home loan rates were a high 17 per cent, but today's variable rates are lower at six per cent.

They argued that the sacrifices young adults make now are incomparable to what they and past generations had to do.

However, Koch said new homebuyers are in a tougher spot than before.

For him, house prices had gone way up compared to what people earn, and this was happening faster than wages were growing.

'Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000—ten times more expensive,' he said.

He explained that in the 1980s, the average salary was $19,000. In 2023, it was $94,000.

'So in the 80s, the price of a house was four times the average person's income,' he said.

'In 2023, it's eight times the average Aussie salary.'

He has also urged mortgage holders with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible.

‘We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal,' Koch said.

'When every dollar counts, 2024 should be the year of the new lender.'

The struggles of young Australians in the housing market are real and palpable.

Mira Almasri, a 35-year-old single mother, rents a one-bedroom apartment with her two children, aged nine and 14 in Mosman on Sydney's well-heeled north shore for $600 a week.

She has given up all hope of owning a Sydney home, stating, 'It's impossible to buy in Sydney.'

'Even if you earn loads of money, it's still hard. All my friends who have bought houses in the last two years say they are not happy at all because they are paying high-interest rates.'

Jacob Burrows, 22, an electrician from Perth, Western Australia, hopes to buy a property within the next 12 months despite interest rates being at their highest since 2012.

He has done a lot of research, including reading a book about a man who owned 30 properties by the age of 30.

However, he acknowledged that 'it's fairly hard at the moment because everything is so expensive’.

‘A couple of years ago, I wanted to try and understand the market to appreciate what's involved in buying a house,’ Burrows added.

‘I spent a year or so learning the housing market, and now I'm going to try to look for cheaper houses instead of buying one big one so that I can have a smaller deposit.'

Still, it’s not all rosy for older Australians.

On the other side of the spectrum, a report by Ageing in a Housing Crisis showed that having safe, secure, and affordable housing for older people has become increasingly difficult.

More older people also lived in marginal housing, as analysed by the Australian Bureau of Statistics census data and homelessness estimates.

The increase in housing costs, declining rates of home ownership, carrying mortgage debt into retirement, uncertainty in private rental arrangements, and the worsening shortage of social housing all indicate a widespread problem of housing insecurity.

This issue of insecure or unstable housing impacts people of all age groups. However, for older individuals, the challenges are exacerbated by factors such as limited income-earning potential, growing frailty, illness, caring responsibilities, an increasing need for at-home support, and age-related discrimination.

Key Takeaways

• David Koch delivered a stark message to older generations, pointing out how young Australians face struggles due to high interest rates and inflation.
• Research by Compare the Market indicates that recent homebuyers who purchased at market peak are financially worse off than those who bought homes several years prior.
• Older Australian homeowners have generally been cushioned from recent rate rises, having benefitted from increased property equity.
• Koch suggested that policymakers should consider ways to distribute economic pressures more equitably across generations.

Members, what are your thoughts on this issue? Share your thoughts with us in the comments below.

Hummmm.
Jacob Burrows (the electrician) is on the right track. Younger people should buy a cheapie to start with (even if it’s in the country - where houses can be cheaper). Then, rent it out and work hard to make extra payments to build up the equity. Then sell & upgrade a little.
I think David Koch is pushing his own barrow a bit - suggesting people use the Compare The Market to get a better interest rate.
Anyway, when we started out, we had a first mortgage at 17% interest on a modest home (with 2 bedrooms, a shower (no bath) & toilet (no ensuite) no media room, no pool, no “open plan living” a single garage with a laundry in it…, As well as this, we had investment loan for a run-down fibro home at 17% interest. We both worked 2 jobs to get ahead, we shared cars to get to work (ortook a bus). No eating out and no holidays. Our first overseas holiday was in our late 50s.
Sorry to say, the younger generation (with the sense of entitlement) need their SUV (not public transport), sometimes a second car too, they want the media room, the ensuite, the double LUG, and all the bells & whistles...
I somewhat take offence at the notion that our (older) generation caused the current “difficulties” the younger generation is enduring.
My observation is that much of the younger generation want everything, they want it now and are unwilling to make sacrifices to get it.

 

[Catherines]

In the very late 60s and early 70s we received $2 for each of them A MONTH. There were no perks for sending them to kindergarten, I didn’t work full time until 1990 (casual during school hours so I could take them to, and pick them up from, school), we paid off our house in 1982 at 17% interest rate, sent all of them to university at our own expense - all of that on a marine engineer’s wage. That wasn’t a huge wage (under $50,000 - not like the wage of about $120,000 now). Once our children could stand on their own feet they all got casual jobs and had a little money of their own.

Seems these days it is a case of getting ‘everything that opens and shuts’ from day one. No one wants to buy ONLY when the money is saved first, too easy to get credit (and heaps of credit on multiple cards etc).

Yes, costs have gone up considerably and everything is more expensive but save first, then buy. Just because you have a few $s in the bank doesn’t mean you have to buy and thereby run your bank balance into the ground.

As for Mr K! Even when he was on channel 7 he thought the financial world was all about his opinion. I never liked him or his big ego way of reporting the financial side of the breakfast show, standing there with his iPad for show and which he never once referred to. We’ve all done our time on various wages, low and high, so don’t blame the older generation or say we didn’t have the same burdens, Kochie. And on wages much lower that you got. We’ve been there and done that, just with a different approach to costs and expenses. Our savings are a result of our ways, then and now.