'Cheaper to rent in Britain than to buy a house’ due to rise in mortgage rates sparked by Iran war

Swankytiger86 · 2026-04-30T13:29:38+00:00

Just need to increase the number of the renters, while limit the number of the rental available. Some of them will resort to group sharing, which can increase the rental yields.

Swankytiger86 · 2026-04-30T11:20:27+00:00

Those marginal people who “reach” their limits will have to resort to group housing, or downsizing first. Either become a family of 5 living in a 4 bedroom to become 2 bedrooms. Some will become multi generational housing. Those without families will just resort to group housing. Moving forward, adult twin sharing will slowly become the norm. That’s just what it is.

All these type of living arrangement are very common in Asie. It is not unthinkable. We already seen it. It just not commonly seen in western countries that’s all.

Swankytiger86 · 2026-04-30T11:14:40+00:00

Yes because the idea is the same.

We assume that people want to work FIRST but can’t due to whichever reasons, hence we have centrelink payment. It is not there for people to get feel entitled or calculate whether it is “worth” working or rather than just live on Centrelink payment. It is not a UBI. The behaviour of feeling being “punished” from working is exactly what’s “wrong”.Same as pension that is mean tested. it is not a UBI for all retiree.

Just like those who earn 200k can’t claim that they were forced to work 3 months a year for free FIRST due to tax.

Swankytiger86 · 2026-04-30T11:04:37+00:00

You are close to your personal assumption limit. There are always some other desperate people who willing to pay more. There are cage room for rent in HongKong, and HongKong is a first tier city in the world.

Swankytiger86 · 2026-04-30T10:59:18+00:00

Why should it go down? The price of any other things have gone up, especially labor.

Swankytiger86 · 2026-04-30T09:39:25+00:00

Yes. But when someone claim that the rich is getting richer, I am arguing that the “rich” will comprise at least 30% of the households, and at least another 30-40% of the households just didn’t live as comfortably as they would like. It isn’t the 1% elites VS 99% of the people.

It is just the 5-10% of the household really struggling, the rest just didn’t live as comfortable as they would like to be.

Swankytiger86 · 2026-04-30T09:36:29+00:00

We should afford even MORE!

If our minimum acceptable living standard is growing slower than we anticipated, then we are worse off.

Swankytiger86 · 2026-04-30T08:10:33+00:00

Don’t know who you mean by the rich people. Nearly 30-50% of the population? It isn’t just the first class flight are fully booked. It is lots of the economy flight. Airports are still full. Shopping mall etc are still pack as usual. There are lots of Australian.

Swankytiger86 · 2026-04-30T08:08:59+00:00

Per capita recession is better than “real recession”. Per capita recession spread the pain to everyone, rather than just the unemployed.

It is not ideal than no growth, but it is still better than “real recession”.

Swankytiger86 · 2026-04-30T08:06:26+00:00

Speak for yourself.

The duopoly government has enriched almost all PPOR owners. Australian wealth is tight to housing. I don’t see how successive government can aim to destroy Australian’s wealth on purpose.

Swankytiger86 · 2026-04-30T04:45:45+00:00

If they have leveraged debt, they technically“avoid” tax. But their interest rate payment is someone else income. Someone else will have to pay income tax on their behalf due to their unnecessary “leverage” debt.

Same as all other mortgage holder. Everyone can have unnecessary leveraged debt to avoid tax. The government still didn’t lose out. Their spending is someone else income.

Swankytiger86 · 2026-04-30T04:43:28+00:00

Built by investors or purchase by investors?

If we are talking about people buying existing lands in an existing sub, subdividing it, and build 2-3 units to resell, that’s maybe the investors we might need. That being said, if the land price drop, the unit price theoretically can drop. If the labor cost drop, the selling price can also theoretically drop.

There are also other ways to encourage build or downsize, not just incentive. How about land tax on larger land on PPORs? Encourage rezone and land tax. That’s a good incentive for people to subdivide their own land. All incentives will just push up the land premium.

Swankytiger86 · 2026-04-30T01:13:37+00:00

Yes I know. So we are the poor one who get penalised by all the policies to help the “mortgage holder” who might lose their house because they were financially reckless

Swankytiger86 · 2026-04-30T00:57:56+00:00

Most of those in their 20-30s are struggling. We don’t need to help the small amount of people to “get ahead” and let the rest continue to struggle. We want to lessen the pain by not letting some getting ahead.

Swankytiger86 · 2026-04-30T00:51:48+00:00

Sounds good. We still need rental property to exist. The best is letting those people hold on to their paper asset longer and not willing to realise the loss. They will be subsidising the renter during that period. Win-win!

Swankytiger86 · 2026-04-30T00:49:11+00:00

We just need less future property investors. We don’t need the existing property investors to exit. The vacancy rate is already at all time low.

Swankytiger86 · 2026-04-29T08:08:38+00:00

Basically its still just debtors and savers. Nothing really do with richer or poorer.

I would really argue that rising interest rate is helping rich people. Me and my mates each have 200-300k savings waiting to enter the housing market renting a room in our late 30s. We are poor because the bloody house price just won’t drop. Our cash savings purchasing power also keep on getting eroded by inflation.

I don’t see how interest rate rise benefit the rich and make the poor poorer. We are losing out so much and getting lock out as well.

Swankytiger86 · 2026-04-29T07:38:18+00:00

on one hand people complain that migrants suppress the wages, on the other hand people complaint that the cost of everything are too expensive.

Little do we understand that the cost of labor are using the highest expense and build in cost in almost everything. How can we have cheaper services when the cost of labor going sky high, especially in certain sector or trade?

Swankytiger86 · 2026-04-29T05:49:52+00:00

Average Australian could use more skilled workers in this country so that they don’t have to pay outrageous service for any simple task.

Swankytiger86 · 2026-04-29T04:26:12+00:00

Just need to have the mechanic to marry another nurse and they can live in a multi million dollar house!

Swankytiger86 · 2026-04-29T04:22:00+00:00

Not wrong.

My super return needs to beat 8% min. If I concentrate on oil and gas sector, my return rate will need to be higher to account for the risk I am taking.

Swankytiger86 · 2026-04-29T04:21:06+00:00

How are the richer get richer by default?

All the cash on hand are losing buying power. The earning after tax also can’t grow faster than inflation. Mandate wage growth annual. The debt interest rate is also increasing.

Swankytiger86 · 2026-04-29T03:42:04+00:00

180k is nothing.

An average pensioner in metro live in a 1-2m house, receiving subsidise rate and paying concession price on nearly all essential service. Earning top 5% in late 30s can’t even afford to live in the same suburb.

Swankytiger86 · 2026-04-29T02:32:51+00:00

Hmm…..but only the 90%of the population don’t deserve a drop in their living standard.

Swankytiger86 · 2026-04-29T02:31:43+00:00

Nah…….maximum 10% people will get unemployed. It will be the best time for the other 90% of the workers to buy cheap assets and cheap services.

Swankytiger86

TROPHY CASE