Peter Costello calls out young Australians who are complaining about house prices

Nine chairman and former Federal Treasurer Peter Costello has claimed that young Australians are putting holidays abroad ahead of saving up for a house deposit.

Mr Costello shared his thoughts during an interview with John Anderson, former Deputy Prime Minister of Australia under John Howard from 1999 to 2006.

His comments come just a month after a survey found that young Australians and people in Australia’s middle income bracket have given up on ever owning their own home.

“It’s amazing how many young Australians don’t believe they will ever have a home,” Mr Anderson said, highlighting the numbers.

“And if they do, it’s by inheritance.” They don’t see themselves being able to work their way into it. So you don’t feel invested.

“There are people who can’t start their own home, who don’t feel like they can start a family with it, and in fact our birth rate is dropping quite significantly.”

Mr Anderson asked Mr Costello why young people are turning to policies that only exacerbate the things that worry them.

Mr Costello replied: “I think when you’re young and you don’t pay taxes, you tend to think that whoever else pays taxes should solve my problems one way or another.”

“And until you start paying taxes yourself, you don’t even realize that all of these measures have a cost-benefit ratio.”

Mr Costello said home ownership is very important for young people but their lifestyle choices come at the expense of their home ownership ambitions.

“They expect to live to be 90 or 100 years old. They expect them to have four or five jobs.” They would rather travel than post bail on a house. “It’s lifestyle,” he said.

Mr Costello warned that rising interest rates and inflation would come as a shock to many young Australians.

“If you’re a young person and you’ve grown up in our country, you haven’t seen a real recession in 30 years,” he said.

Mr Costello also admitted that “the standards have changed over the last 30 years”.

“If you look back 30 years ago, we had much smaller houses but four people lived in them.

“Now we have houses that have doubled in size, but the average household is half that size, so they expect a lot more from the standards,” he said.

Mr Costello said research had found that the biggest difference between a secure retirement and an uncertain one was owning your own home.

“You can live on a pension if you own your own house,” he said.

“But if you’re still renting at 60, you’re under a lot more pressure.”

Peter Costello, who was Treasurer under Liberal Prime Minister John Howard, claimed young people would rather spend money on travel than save for a house

Peter Costello, who was Treasurer under Liberal Prime Minister John Howard, claimed young people would rather spend money on travel than save for a house

Mr Costello said young people reached milestones more slowly than their predecessors as they expected to live longer and have at least four different jobs

Mr Costello said young people reached milestones more slowly than their predecessors as they expected to live longer and have at least four different jobs

Mr Costello’s comments come as a poll by Resolve Political Monitor released last month found that young people and middle earners in Australia have given up on ever owning a home.

Two-thirds of 1,609 respondents agreed young Australians will never be able to buy a home.

Jim Reed, director of Resolve, said high house prices and rents are deterring younger people from entering the real estate market.

“Many young people have given up on home ownership, at least early in their careers, and some even tell me they give up starting a family because they can’t afford to support themselves.” mouths,” he said.

Economist Saul Eslake, who has long been a critic of Australia’s housing policy, said the situation has gotten so bad it is eroding the living standards of future generations.

“I don’t understand why younger people aren’t taking to the streets today and protesting against their parents and grandparents for lowering the cost of housing in this country,” he said.

An average-wage Australian who wants a home is now all but barred from inner-city or near-beach towns unless they are willing to live in a floodplain.

Financial comparison Canstar calculated that someone with an average full-time salary of $94,000 could only borrow $436,000.

Therefore, if the prospective homebuyer were able to put up a 20 percent down payment of $109,000, they could only purchase a $545,000 home or unit.

That’s less than half the median Sydney home price of $1,217,308, even after a 14.7 percent drop in the year to February, CoreLogic data showed.

The average-income Australian would now also be missing out on the mid-market home in the more affordable but isolated capital cities like Perth, where $587,274 is the median, and Darwin, where $585,836 is the median.

Prices are also outside of Melbourne, where the median home price is $897,222, down 11.2 percent, and in Brisbane, where the median is $767,781, down 8.6 percent.

Ex-Federal Treasurer slams Covid overreaction, claims there was more freedom in Australia during WWII: ‘How did we endure it?’

Later in the interview, Mr Costello accused Australia of “overreacting” to Covid, imposing “draconian” and “unnecessary” restrictions on residents.

He told Mr Anderson that governments across Australia had “gone too far” by closing jobs and introducing daily curfews in 2020 and 2021.

Mr Costello said not even during the Second World War were Australians forced to stay in their homes past 9pm.

“If you look back on it, you’ll ask yourself, ‘How did we endure this invasion of individual liberty?'” he said.

“The government had enormous reach, the government had enormous media influence, they held press conferences every day and constantly announced the number of bodies.”

“This notion that if you leave your house for more than an hour a day you could die, or worse, you could infect someone who could die.”

“But somehow you would be safe if you were just out there for 59 minutes.”

Australia has had one of the toughest lockdowns in the world as leaders closed borders and imposed draconian lockdowns on millions of residents.

Western Australia closed its borders with the rest of Australia in March 2020 and enforced borders between the state’s regions in April.

Prime Minister Mark McGowan finally lifted the hard border with other states and territories for all Australians and triple-vaccinated overseas travelers in March 2022.

However, it was Melbourne residents who endured the longest lockdown in the world, with strict house arrest measures being enforced for a total of 262 days.

People were only allowed to exercise within a five-kilometer radius of their homes and were restricted by a night-time curfew from 9 p.m. to 5 a.m.

Similar rules were enforced in Sydney, with the military stationed in “hotspot” areas such as the south and south-west to ensure residents adhered to lockdown rules.

Janice Dean

Janice Dean is a WSTPost U.S. News Reporter based in London. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. Janice Dean joined WSTPost in 2023 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing: janicedean@wstpost.com.

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