Mortgage Stress, Are You Feeling It More than Same Time Last Year?

Frankensnore on 12/03/2024 - 09:50
Last edited 12/03/2024 - 09:52

According to news that I read (can’t find the link anymore, i think its from apple news) the number of people requesting Financial Assistance to their bank has almost doubled from last year. Last year rate is approximately 0.25% cheaper than today.

Compared to March 2022 and 2023, where the rate difference is 3.5%, the number of people requesting Financial Assistance has only increased by 30-40%.

Are you feeling the mortgage stress now?

I understand in ozbargain similar poll existed in Nov or so. But news said the dramatic increase only started in last December.

Poll Options expired

  • 47
    Yes, and also considering to sell my property.
  • 298
    Yes, I feel it much more than last year, but I will keep my property.
  • 422
    No, I am about the same stress as last year.
  • 71
    Yes, I am renting but felt the increased stress.
  • 81
    No, I am renting and not feeling more stress.
Financial Home Loan Loan

Comments

  • Duckie2hh on 12/03/2024 - 09:55
    +57

    What mortgage stress?

    All I had to do was cut back on my smashed avo on toast

    • Derrick Crane on 12/03/2024 - 11:31
      +42

      All I had to do was remember that I don't have a mortgage.

    • Lachy2437 on 14/03/2024 - 09:46

      That's very selfish. Won't someone please think of the avocado growers (ideally Coles or Woolworths).

    • Relapse on 15/03/2024 - 09:25

      What do you mean - Avocados are cheaper then ever. We're truly living in the golden years.

      • us3rnam3tak3n on 15/03/2024 - 10:37

        Still not cheaper via the cafes

  • Dollar General on 12/03/2024 - 10:03
    +38

    Retail booming, travel booming, new cars sales booming, cafe’s busy. Swifties flying in for concerts & booking hotels etc.

    Can’t all be boomers spending.

    Maybe pockets of hardship from those that overextended themselves

    • coffeeinmyveins on 12/03/2024 - 10:11
      +39

      Retail booming, travel booming, new cars sales booming, cafe’s busy. Swifties flying in for concerts & booking hotels etc.

      Correlation does not equal causation.

      The idea of owning a home is so far out of reach for so many people that some may be resigning themselves to not saving for a house, so they have discretionary spending.

      I do agree in some respects however. Valentines day the florists were all packed, and that is the most consumer thing I can think of.

      • Duckie2hh on 12/03/2024 - 10:33
        -7

        The idea of owning a home is so far out of reach for so many people that some may be resigning themselves to not saving for a house, so they have discretionary spending.

        Insert = blame some political party

        • coffeeinmyveins on 12/03/2024 - 11:17
          +12

          Right. Did you just make up a target?

          I mean you're not wrong though, it is the politicians, but not just "one party". They're all corrupt, self indulging slimeballs.

          • infinite on 13/03/2024 - 19:50
            -4

            @coffeeinmyveins: Our current Prime Minister is the only slum lord we've ever had in charge of the country. He owns a portfolio of over $6mil worth of rental units outright. He shifted over a portfolio of other property investments and shares worth vastly more than that into his wife's name before coming into office.

            This is definitely a new thing as far as PM's are concerned. Especially unusual is that he is somehow worth more money than almost any senior politician we have ever had, despite working as a public servant or for the Labor party his entire life.

            • wimphrel on 13/03/2024 - 22:29
              +8

              @infinite:

              Especially unusual is that he is somehow worth more money than almost any senior politician we have ever had, despite working as a public servant or for the Labor party his entire life.

              Either you're really young, or your long term memory is rather poor:

              In 2005, the combined net worth of Malcolm and Lucy Turnbull was estimated at A$133 million,[209] making him Australia's richest parliamentarian[210] until the election of billionaire Clive Palmer in the 2013 election.[211][212]

              https://en.wikipedia.org/wiki/Malcolm_Turnbull

              You are correct in that most politicians are super rich -> even the typical front bencher can have millions in their super by the time they retire (which is absurd given how unproductive their off-screen debates are compared to other civilised countries): but this ISN'T NEW - just social media, and sensationalised journalism does a great job of making you forget.
              Also, isn't Dutton hiding his wealth too - doesn't he own a slate of childcare centres?

              • infinite on 14/03/2024 - 16:38
                -4

                @wimphrel: I was clearly referring to politicians who have worked their entire lives in the public service, or within a political party. Not politicians who were successful wealthy entrepreneurs, then entered politics.

            • coffeeinmyveins on 15/03/2024 - 08:31
              +1

              @infinite:

              Our current Prime Minister is the only slum lord we've ever had in charge of the country. He owns a portfolio of over $6mil worth of rental units outright.

              I guess you like Abbot, our former minister for women?

              This is classic US style mentality. Braindead zombie worship without actually any research, have you had a look at what property portfolios other politicians have? No you haven't.

              This is definitely a new thing as far as PM's are concerned. Especially unusual is that he is somehow worth more money than almost any senior politician we have ever had

              Petter Dutton would like a word

              • infinite on 15/03/2024 - 12:23
                -1

                @coffeeinmyveins: Why are you projecting your hate for individuals you don't like into this discussion where they've never been mentioned ?

                Why are you allowing those people to live rent free in your head?

            • us3rnam3tak3n on 15/03/2024 - 10:49
              -1

              @infinite: I see your disdain for Labor politicians and I raise you disdain for all

              • infinite on 15/03/2024 - 12:24

                @us3rnam3tak3n: Why are you projecting hate into this discussion? I never said anything about having disdain for the Lab party.

                • us3rnam3tak3n on 15/03/2024 - 12:43

                  @infinite: Oh sorry, I didn't realise you meant "slum lord" in the affectionate sense.

                  • infinite on 15/03/2024 - 14:50
                    -2

                    @us3rnam3tak3n: Slum Lord is the term lefties use for those who own multiple investment properties.

                    I'm just using the label for the PM that they prefer to use.

                    That's just considerate.

          • Sinnerator on 15/03/2024 - 08:53

            @coffeeinmyveins: what about the rich people who influence these politicians for self gain?

            • infinite on 15/03/2024 - 12:25

              @Sinnerator: In what context?

              Poor or rich, we all have a vote and the ability to influence political decisions and then remove any politician who fails to listen.

      • RobBoss on 12/03/2024 - 12:02
        +17

        Spot on, people think one can work hard, save up and afford a house in no time.

        Single young professionals earning about 100 to 150k have a borrowing capacity of around 400-600k. Assuming they're saving 20-30K a year, it would still take at least 5 years to put down a deposit for a 1-bedroom apartment in Sydney. Without generational wealth, owning anything above a one-bedroom apartment would take almost a decade of savings and a life of frugality. Couples are in a slightly better position with double the income.

        In short, skipping that cup of coffee or a new shirt isn't really going to help that much with buying a desirable home.

        • beatit99 on 13/03/2024 - 10:01
          +2

          Block-quote Couples are in a slightly better position with double the income.

          Slightly bettter, until they want to have kids

        • EBC on 13/03/2024 - 10:44
          +1

          And this is honestly the best case scenario where housing prices don't massively outpace wage growth as they have for the last decade.

          Save for 10 years and you could end up exactly where you started depending on how the market goes.

          I only just got in the market recently but I can see how young people might see it as an insurmountable obstacle.

          • RobBoss on 13/03/2024 - 20:35

            @EBC: good point, by the time a deposit is saved up, housing would have gone up another 20 per cent

        • infinite on 15/03/2024 - 12:28
          -3

          it would still take at least 5 years to put down a deposit for a 1-bedroom apartment in Sydney

          You have to do what every prior generation did and move to an affordable area. No one with an ounce of common sense thinks they are buying an affordable first house in anything close to an inner city area.

          It's not the world's fault you can't afford to live beyond your means. Believe it or not, a huge proportion of Australia live fun and fulfilling lives outside of late-sipping inner city areas.

    • hasher22 on 12/03/2024 - 11:26
      +5

      Priority spending?

      People will spend 5k on swift instead of groceries and rent and complain about the cost.

      While I agree property and inflation is out of control, people with expendable money should not complain.

      • michaelTito on 13/03/2024 - 13:51
        +2

        its those that spend without thinking are the one that complain the loudest. most of the people that attended Taylor swift concerts are the one that i hear complaining about cost of living.

        • hasher22 on 13/03/2024 - 13:56
          +15

          It's so ironic isn't it? Def. agree.

          People who are oblivious on their spending (no matter what income) just need to wake up and touch some grass.

          My mate with his mrs earns roughly 280k combined p.a and they complain about money every time I see them and it's annoying AF. I love them to death since I grew up with them since highschool and they are good people but I told them off one day about their venting of money and said: "mate, you guys have a house in mosman, 2 kids that go to private school, 2 merc cars, you can afford holidays each year… key word, holidayS, you can eat out regularly and you're telling me you're living paycheck to paycheck!? Mate, come back down to earth, earn my salary of 50k per year and let's see how you survive!!!

          Sorry for the rant lol.

          • michaelTito on 14/03/2024 - 06:57
            +1

            @hasher22: It’s ok to rant. I was having an argument with one of those people recently instead of a normal discussion he started to abuse me and attack me by calling me names. I checked his profile recently and he got a 1 week in the penalty box. I hate those type of people. They got no common sense and need to have a reality check.

      • Willy Beamish on 13/03/2024 - 16:45
        +1

        Agree, people spend way too much these days on non necessities and then cry they are doing it hard. No one needs to have a new iphone every release.

      • [Deactivated] on 14/03/2024 - 13:04

        5k? I know heaps of people that went to see Taylor Swift and spend under 1k. Sure some people would've spent 5k with flights and hotels but majority certainly didn't

        • michaelTito on 14/03/2024 - 14:17
          +1

          I think you just proved his point

          • [Deactivated] on 14/03/2024 - 18:26

            @michaelTito: ….that people should be allowed to enjoy life once in a while lol? She only tours every few years, could well be a once in a lifetime opportunity for many.

      • skidexa on 15/03/2024 - 06:06

        Why blame Taylor Swift fans? It's probably once in a lifetime thing for them. Do you also say the same thing about people going on holidays? And how do you know the people complaining are mostly Swift fans?

        • michaelTito on 15/03/2024 - 10:36
          -1

          If they are stupid enough to support Taylor swift they will complain about cost of living.

    • Drakesy on 12/03/2024 - 11:56

      Media shouting that we've overcooked interest rate rises amidst of huge discretionary spending.

      I have a feeling the RBA still hasn't done enough looking at the number of investment property owners out there. The GFC started when every man and his dog had an IP, and look where we are now…

    • Brianqpr on 14/03/2024 - 14:43
      +1

      While there were a lot of Swfties, I'm not sure many of them are homeowners.

      • michaelTito on 14/03/2024 - 15:40
        +1

        Yes that’s what he’s trying to say. Spend more money on concerts and they won’t be able to afford a house ever.

        • Brianqpr on 14/03/2024 - 20:45
          +1

          He also said the RBA hasn't done enough, but if they don't own homes the RBA has no impact on them?

          Well if they're doing it every week maybe, but this was a pretty big event that fans who attended will remember for the rest of their lives. Or are you expected to do nothing enjoyable and live on instant noodles now to try and buy a house, pay it off and maybe do something fun at age 70, if you're still healthy enough?

          I'd probably have a lot more money if I hadn't gone to so many football matches in the UK, concerts, holidays, backpacking etc. But do I regret a single one of those things? Not even a bit. Memories are worth far more.

    • umoddbro on 14/03/2024 - 15:30
      +2

      I think the whole Taylor swift thing would make a good case study, all this talk about cost of living whilst people have no problems forking out thousands in tickets, flights and hotels for a concert.

      • michaelTito on 14/03/2024 - 15:41

        They are not the smartest bunch

      • [Deactivated] on 14/03/2024 - 18:29
        +5

        Oh please, people spend way more on just about anything. Take out, TVs, consoles, Phones - My god phones alone, you know how many god damn muppets still have $100-150 a month plan?

        • TilacVIP on 14/03/2024 - 19:03
          -1

          Generally, those are the idiots who scream the most about the cost of essentials & the gov't not doing enough.

          • michaelTito on 14/03/2024 - 20:10
            -1

            @TilacVIP: i dont think they understood the point being made here. and im not blaming them. its not easy to manage your finance.

      • Brianqpr on 14/03/2024 - 20:47

        25 odd million people in this country. Plenty of them not that affected by the cost of living issues so big events will always sell out.

        Should the same vitriol be aimed at those who attend the tennis in Melbourne every year, or the footy grand finals? Because those events and many other are just as costly.

    • Zondor on 15/03/2024 - 11:32

      It is.

      Source:
      https://www.abc.net.au/news/2023-11-21/commbank-iq-young-old…

      But that's the thing, People are reaping the fruits of their labor, and others are cutting back. There's nothing wrong with that, so putting interest rates up isn't solving a problem because the market is behaving how it should.

  • Ocker on 12/03/2024 - 10:39
    +9

    What mortgage??

  • burningrage on 12/03/2024 - 10:45
    -6

    Paul Keating used to say, "It's the recession we had to have". Now I understand what he meant.

    If people got money for Taylor Swift, they've got money for mortgage and judging by the number of people turning up, clearly economic downturn isn't down enough.

    • SnoozeAndLose on 12/03/2024 - 11:02
      +5

      Rich people getting Richer, you can't judging from 200K rich people who going to TS concert in Sydney vs 8.6M people in NSW

      • burningrage on 12/03/2024 - 20:26

        But they do… apparently

        https://www.adelaidenow.com.au/news/opinion/swiftmania-backl…

        Look, I am actually happy to see Taylor Swift coming here but given the context of mortgage stress/cost of living vs the number of people who turned up (according to Penbo people spent $2k-$3k for tix), clearly someone's not being truthful about the state of the economy and I am guessing RBA is thinking the same lest they would have cut the interest rates by now.

        • affable on 13/03/2024 - 09:59

          Paywalled article lol

        • infinite on 13/03/2024 - 19:41
          +2

          Your argument is we have too many rich people when somewhere between as little as 1% and 2% of a population are willing to pay for a pop star's concert from their saved up disposable income ……….

          Wut?

    • djsweet on 12/03/2024 - 11:11
      +10

      If people got money for Taylor Swift, they've got money for mortgage

      There is a big gap between the money required to see a concert and the money required to service a mortgage…

      • skidexa on 15/03/2024 - 06:10
        +2

        Its funny how these people are acting like housing and mortgage were not issues before Taylor Swift came along

    • coffeeinmyveins on 12/03/2024 - 11:17
      +21

      If people got money for Taylor Swift, they've got money for mortgage and judging by the number of people turning up, clearly economic downturn isn't down enough.

      Ah I see taylor swift tickets are the new "avocado on toast" argument.

      • pharkurnell on 12/03/2024 - 11:19
        +8

        smashed taylor swift?

        • Drakesy on 12/03/2024 - 13:29
          +16

          One can only dream.

          • mbck on 12/03/2024 - 14:59
            +1

            @Drakesy: Then have your name eternally trashed in a song?

            Sure why not.

            • Drakesy on 12/03/2024 - 15:00
              +3

              @mbck: Well that's one sacrifice i am willing to make.

    • richadam on 12/03/2024 - 15:30
      +5

      If people got money for Taylor Swift, they've got money for mortgage

      Tell me where you can get this magical mortgage for under $5,000?

      • skidexa on 15/03/2024 - 06:12
        +2

        Apparently people on here expect you to not have a life just so you can afford a mortgage or pay someone's mortgage off. Same people probably go on holidays etc

    • Frankensnore on 13/03/2024 - 13:10

      It's about need vs want, isn't it?

      Many people succumb to their want and sacrificing their need.
      Between buying $5000 new gadget vs buying $5000 medical needs, the former is easier to decide.

      The principle to get rich is simple, save up, and invest. The problem is saving up, resisting buying nice stuff and holiday.
      This is why there can be a person earning very high but struggle to pay bills

    • Brianqpr on 14/03/2024 - 14:45
      +1

      If they can pay what they paid to see her every month for 25 or 30 years maybe.

  • netjock on 12/03/2024 - 10:51
    +7

    People used to be stressed out whether they can or how they can borrow maximum.

    Now they are worried about massive repayments.

    People are never happy with issues of their own creation are they? Maybe I need to sell unicorns that shoots out rainbows.

    • locknuts on 15/03/2024 - 14:53

      My daughter would buy those.

  • ttt888 on 12/03/2024 - 10:52
    +3

    Yup people buying new car left right and centre.. Funny in toyota forums in Facebook… u can hear people even taking loan to buy the illusive Rav4….

    • netjock on 12/03/2024 - 13:14
      +1

      LOL when you are in RAV4 territory basically BYD and Tesla is within shooting distance price wise. But then this is from a guy who is driving a $30k car when it was new and it more likely to be worth $25k.

      • Calvin27 on 14/03/2024 - 11:25
        +1

        TCO. That rav has got a good chance of making it to 300,000km without much of a fuss. No way either BYD or Tesla makes that without at a minimum massive battery degradation. Resale reflects that sentiment.

        • [Deactivated] on 14/03/2024 - 13:10
          +2

          Based on…..thoughts and feelings?

          • netjock on 14/03/2024 - 14:04

            @[Deactivated]: People have their opinions on what other people's user case is. Different for everyone.

            I like the one person who said me once they are authority on removing negative gearing because they have negatively geared property. It will always be negatively geared. They are paying interest only. Well financial dumb dumbs sending themselves to financial Armageddon and thinking they are doing good.

            Electric cars can work if you can charge from (excess) roof top solar or can get a plan (the OVO 12-2pm free electricity) and charge up during the day. Then there is people who tell me they work from home all day so they can charge that is their justification of an opinion that everyone should get an BEV.

            • [Deactivated] on 14/03/2024 - 18:32

              @netjock: I don't give a crap what your 'opinion' is, saying "EVs won't make 300,00km without MASSIVE! Battery degradation" is just made up horseshit.

              Old mate compares to a Rav as well, a car that is predominately Hybrids, with old school NiMH batteries that are in fact well and truely established as needing periodic replacment. So to say the Rav will make 300,000 with no issues is just extra stupid.

              Either way, ya talking our your ass given 90% of cars are scrapped well and truly prior to 300,000km

            • Dogsrule on 14/03/2024 - 19:35

              @netjock: The other great thing about the OVO plan is that you get a 'super off peak' period between 12-6AM where all consumption is 8c/kWh. Makes charging really cheap if you don't WFH during the day.

              I travel 40,000km/year for my commute and only spend about $480 on 'fuel'. That being said, an EV isn't for everyone and we still have a RAV4 hybrid for family duties. Charging infrastructure out here in regional NSW is still lacking.

        • netjock on 14/03/2024 - 14:01

          Horses for courses.

          Most Tesla / BYD people aren't about money but feel good factor. Most won't be doing 300k/kms. There is one guy who has done like 600k/kms on their Model S (3 batteries changes) he runs a taxi service from Gold Coast to like Byron. There is an article somewhere.

          • [Deactivated] on 14/03/2024 - 18:34

            @netjock: And no actually, I bought a Tesla because of the total package, but mostly the way it drives. Driving almost anything ICE/Hybrid feels like a total bloody slug compared to a responsive EV.

            • netjock on 15/03/2024 - 07:52

              @[Deactivated]:

              I bought a Tesla because

              You know a Tesla driver… when they start steering the conversation the Tesla they own.

          • us3rnam3tak3n on 15/03/2024 - 11:16

            @netjock: Not sure about that particular case but there is a German taxi (Tesla Model S P85) that had a battery replacement under warranty at 290,000km and has had 3 motor changes on its way to 1,500,000km.

            Oh, a more recent article says it's up to 1,900,000km now but has gone through 13 motors. Would be interesting to see the full history.

            • netjock on 15/03/2024 - 11:24

              @us3rnam3tak3n:

              it's up to 1,900,000km(motor1.com) now but has gone through 13 motors

              That is a new motor every 146k/km that can't be right?

              Tesla owners should be choking on their gluten free, dairy free, nut free, halal, decaf, non alcaholic irish chai-lattes (yeah I know no coffees in chai lattes)

              Horses for courses but some people should just stop flogging their own horses and give people the freedom to do stuff. You can tell them once to work out their user case and pick their horse. Don't come back to complain and pretend it is some it fits for everyone. If that was the case Ford would still be selling the model T.

  • JIMB0 on 12/03/2024 - 11:10
    +10

    Where's the option for debt free, cashed up and laughing?

    • Shoocat on 12/03/2024 - 11:21
      +3

      Jimbo is right, we need another 'humblebrag' poll option.

      • JIMB0 on 12/03/2024 - 11:41
        +2

        The poll is not very inclusive. It only covers mortgage holders and renters that are in stress. A debt free option would be enough, no need to break it down any further.

  • Craze on 12/03/2024 - 11:21
    +4

    Are we going to also cover those with mortgages for multiple investment properties and if they're coping…?

    • OzzyOzbourne on 13/03/2024 - 23:07
      +1

      Won't somebody please think of the landlords!

  • Drakesy on 12/03/2024 - 11:37
    -2

    A lot of it is media hype and cherry picking people on the fringes to make it sound worse than it is.

    At the rate property prices are going the interest rate still has a way to go i.e. too much cash in the system.
    If you're going backwards at the current interest rates you either over borrowed or have terrible foresight. Given that we've gone through 17% interest rates prior this is still the little leagues.

    • Frankensnore on 12/03/2024 - 11:45

      Thing is, I can't imagine property would ever go down, especially free standing house. Maybe a few normalise percentages, but nothing will be dramatic drop like shares.

      The reason is, population is increasing and increasing. It provides home and also financial security and something fun to decorate or renovate (can't renovate rental). Plus the security is not liquid, meaning owner do not have to sell when market is bad, thus lowering the supply immediately when demand is low.

      So even if something causes the price to drop a bit, it will be picked up by the extreme demand for this.

      It's truly the gold of this times

      • Drakesy on 12/03/2024 - 11:47
        +4

        It's meant to be heading down right now, investors are selling up (demonstrable by the quantity of investment mortgages taken out). However the government has decided to pump the immigration taps which are preventing it from dropping.

        meaning owner do not have to sell when market is bad, thus lowering the supply immediately when demand is low.

        This is heavily reliant on negative gearing which reduces the drag negative 'investment' in the form of a taxpayer funded subsidy (HOW GOOD). Hardly a free market when those with money can hoard houses and write the losses off against their own tax (that the Australian taxpayers then miss out on).

        Your whole argument unfortunately is littered with flaws.

        Really this is a classic upper class preservation tactic at the detriment of future generations who are struggling to even pay rent.

        The millenials really do have a case when it comes to having the odds stacked against you.

        • Frankensnore on 12/03/2024 - 16:27
          -5

          Sorry I don't get what you are saying, it doesn't seem to be the same topic?

          Except one of your sentence, the rest seems to be agreeing with my comment?

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