Are other people doing if a bit tough at the moment?

Yeah mate it is, but enjoy it while you can Wayne & have a good one.
Colin.

Wayne, just come back from the Vic High Country today and was given some bum advice from the tourist centre at Traralgon as far as I know.
I wanted to go Traralgon - Licola - Jamieson and was told we wouldn't have any trouble.
A bit later we met a woman at the local market who told us the bridges to Licola had just been repaired after the floods, but we wouldn't get past Licola.
We took her advice and went another direction.
Didn't want to go all the way to Licola and have to come back again.

Dave

Gerhardp1.
Your last paragraph sums it up in a nutshell.

I feel for my grandchildren in the years to come.

Vince

I agree with you Gerhadp1. People need to take responsibility for their finances and keep the lifestyle realistic. Times have always been tough, attitudes have changed however.

Dave

Hey Gerhardp1.

I did the same thing 13 years ago, I took a redundancy package
and paid the house off,interest rates were 17.5%,
We started our own plumbing business, struggled for a couple of
years, now my Cook reckons that I am to bloody greedy to retire,
but she knows our grand kids will be well provided for in the future.
I recently turned 60, so I will start taking short trips very soon, to get
the feel of things, you might say a bit of practice for retirement.

Cheers
Daza

Jeez, Daza, that's a bit spooky - I started my own computer business, struggled for a couple of years, and have been reluctant to stop 'cause it keeps coming :) Cook has not had a paid job for 27 years now, and doesn't seem too keen to get one......

I'm only 56 so will keep up (part time) appearances till I'm 60. Because of the frugality of my nature (born of necessity when growing up) I reckon the kids will have to spend it all as well :)

Dazza - your little entry is a bit scary - why are you worrying about providing for your grandkids - I know it is a nice thing to do - but as one contributor says - you never know what is around the corner - healthwise - and at 60 thats when the body starts to play up - though of course it can happen a lot earlier - my husband had his first heart attack one week after his 50th birthday - then another 5 years later - which was a doozy - so we do as much travelling as we can (work permitting) - we work to live - not live to work - and if there is anything left when we go - well that will be for the kids - but in the meantime - take the time - get out and see as much of this great country as you can - I listen to my mother-in-law say - I wish .....and vow never to be like that - and I won't.
Get out there - go SKIING - (Spending Kids Inheritence) its great fun - and you only have one life - so live it!!!

Hey Julie P

You are so right, but hey I am a soft touch with my Grand Kids, the
way things are at the moment, re housing affordability, and the cost
of living in the future, We just want to give them a bit of security,
I have had Stent inplants and a major Melanoma taken away recently
and I know how short life is, we have done lots of travels re a few
week here and their,I contract to the Government and travel all over
South East Queensland, as a Plumbing Consutant, I even take the
Cook with me on some trips, and we stay in our caravan,which is
part of our business plant,and claim depreciation, lifes good.

Cheers
Daza

With job opportunity on a high & wages pretty reasonable these middle of the road interest rates should only be hurting those that couldn't afford & probably shouldn't have bought a house in the 1st place. I started out on 15% & borrowed an amount I could pay if it rose to 17. One would have to be pretty short sighted to get a loan starting at 7 or 8% and not be able to pay for it if it rose above 10.
Cheers Craig..........

While some will think you a bit harsh Cackles, I have to agree somewhat.
ACA etc always manage to find someone to say that they will lose everything with a .25% rise, but its hard not to think that if it was really that dire (.25% of $300 = $14 a week) wouldnt you offer to wash the neighbours car, or pick up aluminiun cans, or weed someones garden once a week instead lose everything?

The issue is that people today want to have the 5 bedroom 40 square McMansion which entails having the $400,000- mortgage also.
They borrowed with the view that
1. Interest rates are cheap.
2. That you will never lose on property in this country.

Both points heavily spruiked by the property industry for the obvious reason.
They then want the 50 inch Plasma and 3 cars in the driveway so that also gets dumped on the mortgage, "Cause interest rates are cheap" say the banks and property spruikers and the problem compounds.

As the market changes on both points lots of poor families now have a mortgage thats killing them and given that most will have borrowed 100 to 110 percent will also be facing a negative equity situation and will get killed if they try and sell out.

People want it all today and don't know how to save and live within their means.

Stand in line please LOL

I rest my case

LOL

Regards

Kim

Kim, I shouldn't whinge. When we bought our place we were paying 18% interest. We have fewer committments now than when the kids were younger. But I didn't count on retiring early.
I still think I'm better off than many in the bush. Especially those living in communities :)

I guess it depends on your financial position. If you're committed to making money for a living, and lots of it, then you're probably doing well. Especially if you're a tradie or in mining.

If not making over 100K a year...well as a friend of mine once said...you made some poor choices in your youth (boy, did I ever!)

Whats the divvy up for a one way trip Willem? :0)

ROFLMAO Bonz, even I would chuck in for that trip hehehehehhee

Trevor.

$1.00

I really can't see how this will help.. LOL

Richard if the one way trip was to your place it would help almost everyone hehehe I do jest tho.

Willem I know an excellent shockie supplier

Bonz, Willem is away at the moment so it will take him a while to catch up on this thread :)

Hairy,
Bloody hell..... $35 grand on Bourbon just over xmas........ I thought I drank a few but that is a lot..... How are the kidneys....... If u spent more on fuel over xmas u musta had a few drivers to keep the truck going 24hrs and numerous holes in the tank, or did u have a convoy you were supplying fuel to..... $35 grand of fuel would last me almost 3 years at last July's prices....... LOL

Whoops one to many Bourbons and one too many 0's

Davoe,

You raise an interesting point and one that I have been reading about. In the 1950's not every family (in working class suburbas at least) owned a car - fuel was dirt cheap but the cost of buying a car was high compared to wages and they were unreliable and expensive to repair. Some sociologists are predicting a future where only the well off will own vehicles (not because they are dear to buy but because of fuel costs). The cost of fuel is likely to increase in price at a faster rate post the peak oil period (2010-2015). Refer to my post 54513 on this topic. John Howard said once he expected to see fuel at $5/litre in his lifetime. Experts have already coined one new word for the reaction of families to this trend - "cocooning". This means families are tending to stay home more than ever because of better home entertainment (plasma/LCD, surround sound, inground pool, larger homes etc), and high fuel costs to go out. As fuel costs increase further coooning will probably increase. What they are saying is that societal structural changes will occur in the near future partly because of high fuel costs. Already property prices along public transport routes carry a price premium.
What is the future of 4x4ing. I expect that it will be the domain of the wealthy class only eventually. Unfortunate but probably likely.
My opinion is that after about 100 years of relatively cheap fuel we are probably living in the period of the last 5 to 10 years of "cheap" fuel.
Enjoy while we can
Interesting times
Cheers,
Glen

Most Australians are currently enjoying the greatest prosperity the country has ever seen and most have borrowed to the max to take advantage of their position. there is nothing wrong with that but the easy money times can't last for ever. As kevin Rudd said this week inflation is public enemy No1 as it is now trening up. My opinion is rates will keep rising until inflation starts to trend down again. That could take awhile and double digit interest rates are a strong possibility. I do not believe there will be a depression in 09/10 as stated on this post but nevertheless the times ahead are probably going to be tougher financially for many. At least in Australia at present jobs are plentiful(if you are prepared to travel to them). It just means some people may have to "downsize" their house and mortgage if they have overcommitted themselves. Australians are priviliged to be able to withstand future higher fuel prices and higher interest rates than most western countires. So all is not bad.

Cheers,
Glen

your right in what you say Rotord, there are stacks of high paying jobs around in Northern WA, and some people are going to have to bite the bullet and come to where the demand is. I imagine you are in Karratha/Dampier from the sound of it. I work up there also but live on the west coast so have best of both worlds luckily.

I agree with what you say Rotord, but with a bit of a brake on the individual wealth part - Yes, each individual is wealthier (we're talking macro, of course) , but most of that wealth measurement is represented by the increased value of the home.

That's one of the areas where little Johnnie made a big mistake - telling my pensioner mum that she's never been better off because her net worth quadrupled in the last 3 years doesn't help her pay the increased council rates that have resulted from the increased market value of her home.

There is no real easy way to eat the increased home valuation, either, so you can't use it to pay the skyrocketing Government/Utility/Local Govt bills let alone the food. It's just as well older people don't need to eat as much.

I think the "McMansion" syndrome will also prevent those in desperate need from "emigrating" to where the jobs are begging - those people by and large would rather appear on Today Tonight and blame anyone else they can, rather than do what it takes.

We generally agree . When I say that individual Australians have more wealth , I certainly don't include the family home . A better description of real wealth is the ownership of assets , and by that I mean something that produces income . The home is necessary , but it isn't an asset because it costs rather than provides you with income . People are confused when the bank says the home is an asset and you can borrow money on it to invest , but of course they really mean that it is collateral , and that is something very different . Many are falling into the trap of the 'poor dad' in the book Rich Dad, Poor Dad . He kept buying the biggest house his increasing salary could repay and he kept thinking his net worth was increasing , until he retired with a mansion and no assets to live on .Thank heavens that at least super is now removed first so that the aspiring mansion owners can't blow it all on the home .

Probably depends on were you live. I'm in a regional town close to a mining boom. Those in the mines or linked to them are doing quite well and good on them. If you not linked to the mines then real growth in wages has been pretty poor. Compare that to the growth in house prices. I sold up around 5 years ago, average home was then about $120-150k. Nice homes in nice areas etc, etc. The same home now ranges between $400-450k. Certainly no mansion, if you want views or at the beach you can easily x2 or x3. How on earth the bulk of people on standard wages can afford them I don't know. Build in a couple of kids and one wage and you've got a home loan for life.

As you say it's not all doom and gloom but depends on location and age group. If you a first home owner on standard wages it's gonna be tough. In reality your far better off renting so long as you put the difference in investments. I'm counting on home prices coming down or at least stabilising over the med term. If you look at long term property averages the peaks we've seen are looking very unstable. Even it only stabilises you then try and get your investments to do better.

Hello Austravel

Good to see someone who has got the big picture . Another option to renting is to join the enemy , get a job with a miner who provides accommodation . Investing is now easy , simply salary sacrifice into a good super fund . But remember that you can't have the money until you are 55 . If you need money before 55 , then managed trust funds would suit most . For people who wish to index to real estate , managed trust funds in real estate are available .

yep plenty of very nice spots ust 1/2 hour from perth with never ending bush and hilltop views with waterfalls etc
- Unfortunatly it s al locked out

Barb,
We have Coles/Shell Master Card, can we get a Shell Fuel Card with our points.

Currently we use the Coles Fuel Docket to get 4c off a Lt, (spend $30+ at Coles) then when the Master Card statement comes we get a another docket/voucher for another 4c ie 8c in total. Can we buy say a $100 Shell Fuel card with redeemed points for say $95 for additional discount or are the Fuel cards for other brands.

Peter

Hi Peter,
Our card is a Commonwealth Mastercard and we redeem our points for Caltex fuel they come in$25 value and you just use them to pay for your fuel when I can I use them in conjunction with 4c off dockets from Woolies.
barb

personally I think that has been a bit of a problem (not referring directly to you Mark as I dont know your circumstance).
In the old days when people had free(ish) uni education and people who seemed to become serial students-but at the end with a degree in (say) History, Arts, and whatever else, graduate then find "who is going to pay me lots of money to use this?

Some people are better at creating with their hands, and some with their minds.
To me it is sweet that tradespeople are now (like several hundred years back also) valued high up the ladder again.

Mark, there is no doubt that education has been devalued to the nth degree, so to speak. The rise and rise of the wages of the poorly educated (in many cases) simply means that neither of my children wanted to go to Uni. This was for a couple of reasons.
They'd seen mum and dad go through the education mill and the rewards on offer.(ha bloody ha)
And why would they want to graduate with a huge debt around their necks, when the kids next door can do an apprenticeship, have heaps of time to enjoy life and no HECS debt?

Where are tomorrows teachers, nurses, firemen etc going to come from if everyone works in the mining industry?
India? :))

Footie,

Glad someone agrees with me. I can guarantee that I have never been a "...serial student..." and I would argue that these types would have been in the minority to the extreme. Good on those who are earning the big bucks without much in the way of education, but don't deny those who have sacrificed much to educate themselves.

Having been in the teaching industry for 12 years, I can empathise with the current teaching EBA ads that we see on the TV. There are a whole range of trades that earn heaps more than teachers. Whilst I do not want to devalue the 'worth' of tradesman and other similar occupations who are now reaping the benefits, I agree with you that these other 'core' community professions are going to suffer badly in the future, in terms of not being able to attract suitable candidates. I worry about who is going to teach my children....standards will simply fall to attract the 'lesser' educated and/or interested.

I look at my own industry, which I have been in for 10 years now and wonder where things are going to end up. 30 odd years ago, there were ambulance drivers, who's job was to attend various 'medical' and 'trauma' situations, chuck someone on their stretcher and race them to hospital. Compare that with the responsibilities today, where intensive care paramedics, particularly, can, under specific circumstances perform anaesthetic procedures, normally considered within the realm of a surgical theatre, such as Rapid Sequence Induction for Intubation, Tension Pneumothorax decompression, cricothyroidotomy, and a number of other procedures which can be lifesaving in the correct circumstances. All this is done without direct medical supervision...... I can attest to the fact that Intensive Care Paramedics are underpaid for this level of responsibility.

Look up Wikepedia and you will find the following information regarding MICA Paramedics in Australia:
--------------------------------
"MICA Paramedics

Mica Paramedics are extremely highly trained and experienced medical professionals.As with all paramedics they hold a bachelor degree in emergency health such as the B.Emerg Health (pmed) from Monash University.
Mica Paramedics must also complete a graduate diploma in emergency health. This requires concurrent employment with ambulance services in a clinical role and at least two years experience as a paramedic in the service. While also working as a paramedic the student must complete a year’s worth of course work on advance emergency health. Paramedics may also choose to complete a Masters in Emergency Health (Paramedic). However, this focuses more on research, emergency services management and community health rather clinical care.
Working as a MICA paramedic can be extremely emotionally taxing. Currently due to poor pay and excessive workload many MICA officers are resigning from the industry altogether or returning to work on the regular non MICA ambulances....."

----------------------------

I can vouch for the last comment as HALF of my current branch have either left the job or 'downgraded' their qualifications to go back to non-MICA ambulances, due to the poor remuneration versus the accountability and responsibility.

Currently the service deny there is a shortage of MICA Paramedics, claiming "..normal attrition..". This of course is utter cr@p, as very few of the more senior Ambulance Paramedics want to undertake the MICA training, due to the obvious lack of rewards for doing so. Management's answer to this is to 'lower-the-bar', by reducing the entrance requirements for the MICA course, thus attracting those who may be less suited to the job or have the wrong motivation. The outlook for the continuation of the world class MICA system that we enjoy in Melbourne may be short lived, I fear.

All we ask for is adequate remuneration for what we do. Unfortunately, being a 'government department' our only recourse is to industrial action, which I detest. The State government is very poor at coming to the table to negotiate on things like this and continually waffle on about "Government wages Policy....3% etc...)

Whoa, must have been on the heavy beer tonight.....that's my rant, though somewhat OT to the original post, though I'm sure all the travellers on this forum would want a competent, well educated MICA Paramedic to give them their best chance of survival should the unmentionable happen to them, whether in the city or in a remote area.

Cheers,

Mark

Aggreed . An indication of our increased wealth is the ability to spend on what we want to do . In the 1950's people couldn't 4WD because they didn't have a car . If you scuba dived you couldn't afford to skydive or play golf . Now , at least if our house is modest , we can spend , or invest and accrue income producing assets . In Japan if you total a householders possessions he is ' wealthy ' , but he can't play golf because it costs $400,000 to join a club and $250,000 a year membership .One American was close to the truth when he said that national wealth was having rainfall and land .