I remember buying our first home and being absolutely scared shitless, (Yes, that’s right, so scared I couldn’t even poo) because we had to borrow, wait for it, $143,000. I also remember being stressed out of my mind because we had bought a house that was $2,000 over our limit. That’s right folks, our limit was $150,000 and we went to $152,000. Oh Em Gee.
To be honest, I’m not even sure what the interest rates were back in the year 2000 and I certainly wasn’t aware that the reserve bank met each month on a Tuesday and fucked with our lives. Was I just oblivious or was it the fact that information wasn’t quite as readily available as it is today?
Phil’s dad was horrified when he heard we were going to borrow that kind of dosh. Couldn’t we just save up and buy it outright he asked? Um, let me think about it. No we fucking can’t because
a) Unless we won the lottery, robbed a bank or (nudge, nudge wink wink) were left an inheritance it was impossible and
b) even if we could save up $140 odd thousand, by the time we did that, the house would have tripled in value and we’d be worse off than had we just jumped into the abyss in the first place.
The fact of the matter was, the banks had us over a barrel and if we ever wanted to get close to living the ‘Great Australian Dream’, we’d have to beg them for the cashola upfront. Thing is, ‘The Great Australian Dream’ has changed since our parents were tackers. Back then it was all about having a 3 bedroom, 1 bathroom, and single story house sporting a sizeable back yard with enough bindy patches to take down a fully grown man and mandatory Hills Hoist to whirl both washing and kids around on. The really well off people had an in ground pool. Those of us who weren’t, spent our summer days in their pools anyway.
Nowadays the great Australian Dream comes attached with an average mortgage that once upon a time would have made us millionaires, and at the mercy of lending institutions at large.
Yesterday, when they thought the nation would be too pissed to notice, the Commonwealth bank jacked up interest rates to nearly twice that of the Reserve Banks. Basically they gave its customers the giant middle finger. This, hot on the heels of its rival, or I guess a more apt description would be its fuckbuddy, Westpac declaring a 6.3 BILLION dollar profit. Not bad hey.
Who wins when the banks make profits? The shareholders and the fat cats at the top. Oh, and those on trail commissions. Of course those with Super Funds that have investments in banks and the self-funded retirees do a happy dance every time the rates go up but does the young myopic guy behind the counter copping everyone’s vitriol get a fair chunk of any of this? Nope. The best he can hope for is a holdup-free day.
And of course there are those out there who would argue that if you can’t afford a few rate rises, perhaps you shouldn’t have the loan in the first place. I doubt it’s the rate rises that have gotten them in the shit. Perhaps it’s because a father has had to spend the last 2 months at his daughters bedside after she contracted meningococcal and therefore, hasn’t worked. Or perhaps their car has unexpectedly shat itself. Maybe someone’s wife got cancer and the insurance won’t pay out. Who knows? Circumstances have led them to the point where they can’t afford the mortgage and no one has the right to judge why they are there.
I kind of got to wondering about the Reserve Bank. We hear the term every month but what are they there for? And if they can lend our banks money and set the rates, why can’t we just borrow directly from them? I know this is naive. I know I sound like Pauline Hanson, (who by the way, I believe is a fully fledged fruitloop) that time when she asked why we just can’t print more money, but it’s just something I’d like an answer to.
Here are the obligations of the Reserve Bank, per their very own website,
‘It is the duty of the Reserve Bank Board, within the limits of its powers, to ensure that the monetary and banking policy of the Bank is directed to the greatest advantage of the people of Australia and that the powers of the Bank … are exercised in such a manner as, in the opinion of the Reserve Bank Board, will best contribute to:
a. the stability of the currency of Australia;
b. the maintenance of full employment in Australia; and
c. the economic prosperity and welfare of the people of Australia.’
So there you have it. That’s their deal. Are they sticking to it? Do they have a choice? You need to ask a much smarter person than I, but jacking up interest rates right before our biggest retail period of the year certainly does nothing for employment or internal economic spending as far as I can tell. And employment, well ask any business owner or construction worker on the street and I guarantee you that there are many concerns about long term prospects.
I guess the only way to make a point with the banks is talk with our feet. You’d be surprised how much as a collective group, we all mean to them.
Ironically enough, we now live in a house that although in a top location, is smaller than the one we started with. That either makes us shithouse with our money or simply just a family living in 2010.
I think the swearing in this article is appauling. You don’t need to swear to make a point.
Hey Jo, if you didn’t notice Mystery Mums posts do cary a warning that it may contain strong language. if you cant deal with swearing then don’t read it.
Thanks Mystery Mum… dealing with home loans and banks is almost impossible at the moment… even with a fantastic credit rating, a six figure amount sitting in a bank account and property! Anyone would think I was trying to borrow millions and not less than 200k. Being self employed can suck sometimes but at least I know I have a job and I am the only one responsible for the outcomes. Banks have a lot to answer for and so does this government.
Great article… gave me a good laugh and was full of great points…
As for the swearing… i like it… gives a bit more character and attitude to the article… To be honest all this political correctness and people saying that they get offended by a mere word is doing my head in… perhaps you could do an article about political correctness gone to far…
Anyhow thanks again for bringing some humor to my day,
Phil
Love it. So true and so well written.
Talking with our feet is a good idea, but unless we avoid the big banks altogether it wont mean much…
Hey Jo,
If you can’t take grown-up language, don’t read blogs with language warnings. Maybe read the dictionary instead so next time you can spell ‘appalling’.
Mystery Mum, like many of us, is too angry to hold back at the way our lives are being screwed. Big picture, not pettiness, is needed here.
Hey Jo
Pull your head in! I can’t believe you would go to the trouble of doing a reply just to make some mamby pamby winge about strong language. I’m with Phil. I like it and I think Mystery Mum’s a hoot. You go girlfriend!
The only way is where baby? I note that you brought a $152,000 house, which was $2K over your limit, with a mortgage of $143,000, is this because you had no savings and were using only the First Home Owners Grant? With obviously no savings, and total naiveness to interest rates and the Reserve Bank, I question if you were mature enough for such a commitment. You would have known that the Reserve Bank meets monthly and because your repayments would have been dictated by interest rates you should have known what they were. I guess you are one of these people that should not have had a home loan in the first place, but took advantage of the Governments deregulation of credit. I see that a measly $2,000 was well over your budget 10 years ago, did you borrow more or less for your second house? I think you will find it is the house prices of today that is the problem, not the interest rates. Unfortunatley the Government deregulated credit which opened the doors to dodgy lenders and shonky greedy real estate agents that took advantage of factory labourers and waitresses that should never have entered the housing market in the first place. This unfortunatley drove the price of housing through the roof. Your house in 2000 was $150,000 (probably too dear in the first place) but with a proper income, would have been affordable, now the same house is probably $400,000. Maybe you should log onto a Bank website and do a loan repayment calculator on these two figures and tell me whether it is the .25% interest rate that is the problem. You are a child of the 80’s and brought a house in 2000 and would have been a maximum of 20 years old at that time. I guess I am pretty much on the money that you were probably too immature and naive to enter the market. Since you got your First Home Owners Grant, I bet you have received a hell of lot of stimulus with your 3 children and low income, accompanied by hell of a lot in government asistance every week, adding up to tens of thousands of dollars. Are you too young to remember that your parents were not given such handouts when they were buying their modest house. Today no-one is buying or building a modest house,one that has only one bathroom and where kids may have to share a room. Nowadays, a TV has it’s own bedroom and we call it a Media Room. Back in the day such a house would have been owned by a Bank Manager, Doctor or Lawyer, now anyone can buy it as long as you can find the right lender and lie on the application form about your household expenditure (I question whether you filled out all your forms honestly). I’m guessing you also have a couple of new cars, I am guessing you have an airconditioner, mobile phone and obvioulsy you are on the Net too. All these expenses probably all on credit. You are a mother of 3, part time worker, is your phone a necessity or a luxury? Maybe you should have a look at your spending habits before blaming other people. Have you considered applying for a full time job, let me guess, it’s too hard with the kids. You are in your second house in less than 10 years, I guess the shine is starting to wear off this house and you will be looking to update/relocate in the near future. Probably with something bigger and better. When you do this, I hope I do not read another whinge about your household expenses. As for the swearing, I agree with Jo, it was uncalled for, it showed your age and immaturity and it saddens me to know you are an example to 3 children. As for Batgirl’s “it’s grown up talk” when you go to the shops or to a restaurant, I don’t recall hearing grown ups speak like that, however I have been to a pub and heard a table full of slappers talking like that, get some class, sit down with all your bills and work out a budget that will work. Just remember, you put yourself in this position and the world is not to blame because you wanted everything that you couldn’t afford.
Oh dear.
Aidsy, you lost me in the first paragraph
FFS – that was 2000 NOT 2010 – NO first owners grant then
Jo – if you can cope with ’strong’ langauge – how do cope with a strong coffee? – or maybe you;re a tea drinker?
either or FFS grow up
Phil *shakes your hand*
FYI – I bought my first house in 1987, interest rates were 17-18%. I was 18yo. I bought that house and paid it off in 27 months. You want to know how? I worked like a dog – 18hours a day and to this day I DO NOT regret ONE minute of it. you know why? because I now own my dream property (subjective to some) and I’m happy.
There I said it – and for all the knockers out there, in 20years time – who will be paying YOUR rent? not the Government – they’re winding up the retirement as we speak!
Do come knocking on my door – I don’t do hand-outs
Just so you don’t feel bad after all that, I didn’t know anything about home loans and reserve bank before we got our first loan either, I think that’s how you learn things, by experience…We also learned that having the best house in the worst street won’t get the money back you spent trying to fix it up. I will never make that same mistake again. It’s called Life. I don’t think we should complain about government hand outs and how hard it was for everyone else 20 years ago, we should be grateful that we live in such a lucky country and that we don’t have to struggle as much as perhaps our parents did.
sorry should read CAN’T ” if you CAN’T cope with ’strong’ langauge”
that happens when you’re answering phones etc as an employee!
Firstly to ‘jo’, please learn to spell before you complain about someone else’s use of language.
To both ‘jo’ and ‘aidsy’, as pointed out by others, there is a language warning, so either heed it or fucking well shut up about it.
To ‘aidsy’…. I have no more words. Oh wait, two come to mind…arrogant cretin. There you go.
Finally to Mystery Mum, I enjoyed your piece very much. It was thought-provoking and honest. As a mother who has a mortgage and bills to pay, but whose husband works for one of the big banks and therefore relies on his job to keep a roof over our head and food on the table, I always see both sides to every financial story.
But usually agree with the customers because they often treat their staff like shit too.
Oops, I swore again, well fuck me.
Goodness me, Aidsy.
If you want anyone to read your posts you may want to consider the use of paragraphs. My eyes just crossed and I nearly fell over my own baby-bonus-funded plasma tv!
Sheesh!
STxx
PS MysteryMum – I was also absolutely terrified when ex and I bought first home, we honestly didn’t know anything about how it would all work out in the long run, despite being children of the 60s not 80s.
We were newly married, had a young child, and had NO idea what would happen with our respective careers, the property market, exchange rates etc. – we just learned as we went along.
Then, as luck would have it, we split up, sold the house and ended up with nothing each.
Go us!
I admit I couldn’t read that long winded comment.
Only because the comment started with ‘I note that you brought a $152,000 house’
Where did she take it?
Bought. FFS.
Aidsy, Aidsy, Aidsy ….
Assumption. Hostility. Poor Maths. Take away the first subjective thought and judgement call you thought of. Add in a fair amount of vitriol, unintentional hilarity and verbal diarrhea. Double your IQ number. Stick out tongue and concentrate as you press send and think of the first thing you thought of…
Barbara from Bank World – is that you?
Mystery Mum, I was overseas for all of the noughties, so have little knowledge about home loans around that time. Are you now planning on moving to a McMansion? After reading this post, I don’t think so.
Aidsy, pahlease, no one really read your whole shpeil, too long, no paragraphs, boring and there was no need to trash the writer. That’s the point of a blog post, it’s the posters right to say whatever she or he wants. Do you know Mystery Mum? Do you know what her and her family’
Damn iphone sent the last comment before I’d finished…
Do you know what Mystery Mum’s circumstances are? No, I assume not.
To you Aidsy and Jo, grow up. Swearing is part of everyday life.
(iphone is pissing me off, so I’ll finish my rant here)
N x
aidsy – rant much?
The only way is straight back to school for you, Aidsy. Your unfounded assumptions are not only rude, they’re patently WRONG.
It must be hard for the author to accept the criticisms from these correspondents given that they can neither spell, nor use paragraphs correctly.
I thought the article was excellent. Fucking excellent.
Aidsy, you are one judgmental person arent you. I will make my own judgement and say you are one hell of a keyboard warrior. You obviously dont know Mystery Mum, neither do I. However I respect her right to an opinion as I do yours. But you have no right to make judgements on someone you have never met and dont know their circumstances.
Make your criticisim based on the content of the article not on who you think the person is.
HA HA WHAT A JOKE.
If the biggest issue in this ‘massive financial stress’ article written by Mystery Mum is my reply and paragraphing, I am guessing you all missed the point.
Are you people serious?
Honestly, this is my second post and I will be sure to use some paragraphs for those who went crosseyed, now that I know I can use them in these blogs!
I must have struck on a few nerves with irresponsible lending and the ease of credit. I am glad not to be one of those people living on the Gold Coast where it is a must to keep up with the Jones with thier flash housing, Beamers and big flash sunglasses, and hang on, tatts!
Great to hear from you all, do you guys also text the chat room
of ‘The Bulletin’, I am guessing you are all for the ‘Ban the Burker’ and hate the Gold Coast City Council, maybe you should go for a few roadtrips outside of the Gold Coast and see where you really are in the big picture.
My point is and was, Mystery Mum is a classic case of Gen Y, where we have a 5 second mentality, where we want it and want it now
and are not prepared to put away or work for it and blame everyone, but themselves, when things go a little bit wrong.
If I worked part-time I would be bothered to read and be able to respond to the other 147 posts from Mystery Mum, but I am guessing they are also ‘poor bugger me’ waffle.
For the record… FUCK….. FUCK….. Fuuuuuck!!!
Cheers!
So, I wasn’t going to reply to Aidsy because, well, in truth, it’s always best not to feed the trolls. Plus, I was kinda busy polishing my X5 and talking to my plastic surgeon about getting bigger breasts on credit.
I so wish you were on the money with your assumptions about me Aidsy, but alas, you were wrong every freaking time. (I kept that clean just for you, I know you have sensitive retinas)
I have no problem with you debating any points in one of my blog posts but to get personal, just shows you have your own issues. That’s fine dude, just don’t have a coronary trying to somehow make them mine.
I do wonder however, what it is like to be you. You know, to be born so smart and knowledgeable about EVERYTHING. How you’ve clearly been lucky enough to have hit the bulls eye with every single decision you’ve ever made.
And, although I have no need to justify myself to you, I will, just for the hell of it.
a) Pretty sure at no time did I request you or anyone else to help me make my (manageable) mortgage repayment. I was simply pointing out that the banks were being greedy bastards. Which they are.
b) Yes I work part time. It’s enough so I don’t have to ask the government for help. Something I thought you would commend, not condemn.
c) I’m Gen X, not Gen Y. More than likely older than you.
d) If you don’t like swearing, don’t read. Pretty simple really.
Oh, Jo and Aidsy .. your stuff is toxic. And some of it is too long, so didn’t read after my eyes started bleeding.
You’re probably the kind of people I deal with on a day to day basis; the kind that let their kids swim/roam/play on highways/drink booze at aged 10/blah blah blah and then blame everyone else when something goes wrong. The following are true:
a) Mystery Mum rocks. STFU.
b) The Reserve Bank does not rock. STFU.
Jo and Aidsy met in a bar … Jo says to Aidsy, “so I see you’ve had a sex change operation? Wow, you look great.”
And Aidsy says to Jo, “Thanks, it was something I wanted to do for a long time. I feel beautiful now. Glad my dick is gone.”
And Jo says, “Did I hurt, I mean having your dick cut off must hurt like fuck”
Aidsy replied “Nah, the genital removal didn’t bother me. It was pain free. What REALLY hurt was having my brain shrunk, my mouth widened and my attitude fucked”.
That is all.
Dammit, there’s typos in there … “Did IT hurt” asked Jo.
Sandra R – Barbara from BankWorld is in a meeting.
Ah mystery mum you responded with such politeness and restraint. I would be concerned if I was Aidsy’s friend considering he makes such judgmental comments about those he doesn’t know let alone if he did have the facts about you.
Most people blog/make comment on current news events with support of their own experiences it would’ve been a less substantial post if
mystery mum hadn’t shared her experiences.
I think it is rude and obnoxious to judge someone in such a way when they were willing to share the personal information to highlight the issue. Just because mystery mum provided SOME of this information doesn’t mean you have all the facts.
If you have information to add to the discussion or to assist in being constructive that is fantastic but if you choose to fill the majority of your post with stereotypical, value-laden, judgmental statements that have no substantial evidence then maybe it’s best to lock access to your keyboard.
If you have enough time in your day to be so critical of another maybe it’s best you invest in a mirror and start there first. Then if you have time by all means return with some helpful commentary.
Understandably those who have an issue with the language – each to their own I say though as people have highlighted take note of the warning then there is no need to comment about your disgust as you were given clear warning.
Thank you mystery mum again for a brilliant, honest and witty post.
Fuck, these comments are hilarious.
Interest rates in Australia in 2000 were 6.9% to 8.0%, around what they are now.
Commbank profits were about 2.5 billion on 250 billion worth of assets in 2000. They are 5.5 billion profit on about 650 billion worth of assets in 2010.
In short, the difference between 2000 and 2010?
Nothing.
Oh and I agree with Jaime.
What’s a “berker”?
Should we ban it? Is it ban-worthy?
Perhaps that was a typo and actually should have read “beaker”, to which I say NO, don’t ban Beaker, he was one my fave Muppets ever!
Or was he Beeker?
So many typos, so little time…
I don’t text, my-space, facebook or tweet and that was my 1st reply to a blog. Judging by all your cheap and childish reponses I think I’m too old for this too!
For the record I’m 37, own 2 houses outright and have tenants paying off my next house. Oh, and I’m happy with my bank too.
Wow there is some serious drama happening in here!
I believe that costs on the gold coast have gotten out of hand. I am on a decent graduate wage (+50k), my partner is doing his PhD (+20k), even WITH +70k a year we are struggling.
We have moved out of home for the first time (choosing to wait until AFTER I finished university and had a full time job). We have two roommates (who are currently job hunting and having troubles with centerlink so we are supporting them). 70k isn’t enough to support 4 people atm. We are getting by covering the following:
rent – $355/week ($1538.33 per month, that’s half of what I get paid every month)
groceries – $200-$250/week ($866.66 – $1083.33 per month)
petrol and public transport – ~$150/week ($650 per month)
TOTAL (BEFORE bills etc) : $3054.99
That leaves $102.18 a MONTH from my wage (after tax).
My partner would be on (approx) $1875 a month.
That gives us $1977.18 to cover bills and incidentals oh, and trying to save to buy a house of our own. I’m guessing we’d be able to save $1000 a month? maybe a little bit more? (~$12000 a year). How long do YOU think it would take to save enough to buy a house (looking at AT LEAST $300,000 if we want to be close to ANYTHING) without a LARGE loan? If we wanted to ONLY borrow $143,000 we would be saving for 13 years! (I am assuming in that case that our incomes would increase at the same rate as property prices – unlikely!)
Aidsy obviously you got everything sorted out when it was a bit easier on everyone then the current climate. With “tenants paying off my next house” I doubt you really feel the pain of costs as they are currently as you’re just ‘passing the buck’. I guess you’re rubbing your hands with glee with the laws changing to allow you to pass on water costs too!
Well written – I hope that the other readers compliment you on this article. I too think it is appauling that the banks can make such a huge profit each year while us small business owners struggle to make ends meet each week. Seems to me that Everyone is All talk and no action! As a mere “little person ” I can see the trouble heading our way so why the bloodly hell can they and why are they working to stop the hole we are all going to be in sooner then later ??
Natski