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Indifference

26F71B7A-433E-4371-BA68-455459026EDF

26F71B7A-433E-4371-BA68-455459026EDF
Indifference, 31st Jan, 2021
VioletStar likes this.
    • C-mac
      Seems kinda unsustainable, huh, when plotted on a chart like that.

      I guess all I can speculate is this: the red line is average full-time earnings. But, silly reader of chart, know this: over the same 50 year period guess what other metric has grown wide? The disparity between the rich and the poor. So many of the rich do own a lot of the prestige-end property and even above-average detached houses-property; and the rich don't work "full time" in the measurable way the ABS say; might consider it. So, the chart looks so scary and unsustainable (and it is!), but I would love to somehow see them plot on the chart the gap between rich, middle-class, and poor, over the same 50 year trajectory.
    • Frank Frick
      @C-mac
      It isn't a very good chart. What does the y-axis equal? I'm left to guess... $K?
      But does it mean the house price or the loan size?
      It also doesn't factor in interest rates. Supporting 150K loan at 14% pa (this happened for some years in the early 90s, and was dreadful, but people scrimped stressfully though it) is actually a lot harder than borrowing 500K at 2.5% (now).
    • Micheal
      Major problem with this chart and I get this thrown at me quite often.

      Median house in the 70’s: 3 bed, 1 bath, 1 garage.

      Median house now: 4 bed, 2.5 bath, Walk in robes, designer kitchen, A/C throughout, rendered front, double garage, in-ground pool

      Got to compare apples with apples here.
    • RichieRich
      @Micheal not our place in Sydney. It cost $200K to buy in 1992 and is $3.2M market value now. That's 16x in just under 30 years. Original, and I mean original condition.
    • Indifference
      @Frank Frick no need to guess... just read the title text.... it's an index scale that sets 1970 = 100.
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    Indifference
    Date:
    31st Jan, 2021
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