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If your house was something that your dad signed, or a loan of 10 or even 5 years
ago, you'd probably be sitting on a gold mine!. Certainly a paid off house is a fine
financial goal, but at 8x wages and growing, and average homes no longer
affordable on average wages, a loan today means a typical family will live in
mortgage stress with little or no mortgage holders have less ability to negotiate
with a bank. This also assumes the economy does not change, interest rates do
not go up, and job security stays where it is. Australia has the most overpriced
Remember that a loan today is a very different beast from the loan your dad
signed, or a loan of 10 or even 5 years ago. Certainly a paid off house is a fine
financial goal, but at 8x wages and growing, and average homes no longer
affordable on average wages, a loan today means a typical family will live in
mortgage stress with little or no mortgage holders have less ability to negotiate
with a bank. This also assumes the economy does not change, interest rates do
not go up, and job security stays where it is. Australia has the most overpriced
housing in the world. Renting provides a means to live and accumulate cash, which
can be used in any number of ways, good times and bad. You might think that the
past few years market performance indicates future performance. If that pattern is
to continue a $500k house in 03 will be worth 3 million in 2015. A standard 8%
25-year 3 million dollar mortgage will cost $23,154 per month. Total interest
payable 3,946,345.97.