I don’t have an ounce of sympathy for those that get into debt as deep as they can in order to sustain a lifestyle that is above their means.
I’ve always lived in modest homes, and my wife and kids did not suffer ill effects. In fact, they fondly remember the home they grew up in.
I may not be Dave Ramsey approved debt free, but I’m darn close.
There would be some highly beneficial effects if people stuck to housing they could actually afford.
Older city neighborhoods would be revitalized with an influx of younger, productive families. That housing stock would get fixed-up and the residents would start caring about local schools, streets, etc. They would stop voting for the sort of candidates the “taker” class elects to City Councils, and would throw a break on the decline of civilization in our cities in general.
I am not sure about that advice.
Obviously, those who borrowed the maximum, like the couple interviewed, are in dire straits if their income falls - which is a natural event during a recession.
But rents are very high in Australia. And they seem to stay high. There has not been the extent of building housing stock which one sees in the USA. If there is a burst of inflation, one might pay rent for five years, and then be worse off.
Best advice is to buy only what you need, and like brownsfan on this thread, be modest and frugal. Don't grab for a lavish property. Many Australians want a 'show off' house. They are very mistaken.
I've never been one to try and keep up with the Jones', instead, I'll wait and catch up with them at the auction sales for pennies on the dollar.