Australian Politics, Mark II


#5305

We’ve been here already right? In some circumstances it’s irrelevant and in others it is very much so, eh?


#5306

only irrelevant if you choose to see them as the same.

They are certainly different in my world.


#5307

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.


#5308

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.


#5309

Isn’t the long term Australian trend inflation + 1%?

Note sure if that value includes the 1890s.


#5310

Well actually…

Plenty have people have paid for a holiday here, a car there and rolled up credit card debts into the home loan.


#5311

Sorry, Deej, I’m not following you.


#5312

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.


#5313

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.


#5314

#5315

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.


#5316

Well, yes.
Quite.
I agree.


#5317

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)


#5318

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.


#5319

From the beginning…8.8%pa nominal…I’m jealous!


#5320

lol.
I only bought it the last time.


#5321

Must be in a good spot!


#5322

Also, property reports are fun!


#5323

Only if you’re doing 8.8%pa


#5324

Just looked up an old neighbour in Ashburton.

1995 143k
2002 345k
2006 457k
2018 estimate 1.32m