|
WhiskeyWhiskers posted:I really can't understand why the libs thought good debt/bad debt would help them. Theyre the only ones who bring it up. And they're not going to win the next election anyway. Basically just gave away their ability to whinge about debt. I was listening to an interview with Scott Morrison this morning, and basically describing the standard economics theory of variable costs versus fixed costs, but for some reason is using good debt / bad debt. I mean the logic is sound in that there's a certain level of fixed costs that can't be changed easily / at all, and so you want to make sure that your revenue covers off these costs at a minimum. variable costs are much more controllable (i.e. embarking on infrastructure projects) and so it's taking on debt to cover these more controllable costs is understandable. However, trying to call them bad debt and good debt though is purely an exercise in spin, and is pretty dumb as a whole.
|
#
¿
May 1, 2017 05:23
|
|
|
|
| # ¿ May 6, 2024 06:43 |
|
|
Housing is insane in Australia, and I feel lucky that my wife and I got into the Sydney suburbs market when we did (2009). At the time, we were DINKs and had both been saving for 6 years, both of us on very good salaries. We still had to take out a mortgage of $550k (so basically, two 30 years olds each taking on over a quarter of a million in debt). We stretched our budget quite a bit to do so, but we really like the house because it was brick and it was near public transport (15 minute walk for a 40 minute train ride to central) on a decent sized pieces of land. Our neighbour just sold his property, which is a 3 bedroom fibro house on a much smaller piece of land. It sold for $1,100,000. If my wife and I had been looking to buy a house under the same circumstance as when we originally bought just 8 years later, we would have needed to take almost a million dollars in mortgage. My wife and I were in about as favorable conditions as could be expected, and buying a house still involved scary amounts of debt and saving for us. Anyone saying that getting into the property market is a case of saving on coffees or breakfast weekly is an idiot.
|
|
#
¿
May 15, 2017 04:40
|
|