We’ve been here already right? In some circumstances it’s irrelevant and in others it is very much so, eh?
only irrelevant if you choose to see them as the same.
They are certainly different in my world.
You cannot pay for your groceries in “gains”, nor “equity”, nor “The Dingusdollar”, as I found out the other day when paying for the weekly shop.
Even though it is currently exchanging with the AUD at $782.26.
Idiots.
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Um… I just said that. They’re relevant to one group and not another. Lets leave it here it’s getting tedious. It’s ok when people agree to disagree.
Isn’t the long term Australian trend inflation + 1%?
Note sure if that value includes the 1890s.
Well actually…
Plenty have people have paid for a holiday here, a car there and rolled up credit card debts into the home loan.
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Sorry, Deej, I’m not following you.
So if I understand you correctly, you’re saying I should convert my Dingusdollar holdings to some kind of debt? Some kind of delicious, Mi Goreng and triple cream Brie fuelled debt?
Economie’s is hard.
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What you should do is come up with some obscure structure to layer your dodgy dingusdollars into a Triple A rated product. I’d call them Collaterised Dingus Instruments (CDI’s).
By the time anyone figures out your CDI’s are worthless you will have walked away with millions.
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Property prices up inflation plus one percent, over the very long term. We are not in a normal state right now and obviously it can’t continue because otherwise the primary way you get to own a property will be inheritance.
As I said, I don’t recall if that long-term trend included the massive 1890s property crash.
Well, yes.
Quite.
I agree.
FWIW…because this thread motivated me to look this up yesterday…
From June 2008 (circa GFC) to June 2018…so the past decade…Australian property prices have increased 31% in REAL terms.
(My statistics come from the BIS, and I just accepted them without scrutiny)
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Depends on the property, of course.
Just looked up my place.
1989 73K
2001 276k
2013 531k
2018 Estimate 840k
Maths isn’t my strong suit, but I’m sure that’s a leeeetle over 3%pa.
From the beginning…8.8%pa nominal…I’m jealous!
lol.
I only bought it the last time.
Must be in a good spot!
Also, property reports are fun!
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Only if you’re doing 8.8%pa
Just looked up an old neighbour in Ashburton.
1995 143k
2002 345k
2006 457k
2018 estimate 1.32m