How will you cope? 1980s image shows estimated cost of goods in 2010.

Discussion in 'Property Market Economics' started by val, 9th May, 2018.

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  1. Codie

    Codie Well-Known Member

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    Not that I know much about inflation and what causes it..

    Given that it basically eroded debt in the 80s and caused prices to double/triple in short periods of time,wage growth etc. inflation seems like a massive part of the story

    My question is are we likely to just see inflation get less and less over time? Or more.. So projections are 2.5-3% currently?

    What’s to say it’s not 1% in 15yrs time & therefore property increases would just about be long gone.
     
    Kangabanga likes this.
  2. skater

    skater Well-Known Member

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    I like this! It just goes to show that things do not appreciate in a linear manner.

    Often you have posters complaining about how house prices have appreciated over time & how unrealistic they are today, but when you look at this, you see that the price of a first home, somewhere near Adelaide was predicted to be almost $300k, which seems about right. However, over this period there has been many other items where the price hasn't gone up at all, in fact, some have even gone backwards, for example, washing machine, family car, air fares, shoes, clothing, kids bikes (toys) etc.

    The age pension is well out. Mother receives around $900 per fortnight as a single.
     
  3. Dave3214

    Dave3214 Well-Known Member

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    All services have gone through the roof, trades especially as stuff that is required to be done in Australia by Australians has seen tose costs escalate exponentially. But goods, especially as things have now gradually now been replaced by exports have gone up only a small amountm, and in some cases not at all.

    My father's first Rank Arena 23" colour TV in 1977 cost over $700, now you can get a 32 inch TV for SFA, often under $300. That would be barely 5% in real terms of the '77 price. And my brother's 486 PC in 1993 pre internet with a then whiz-bang Super VGA monitor was about $4K....most desktops with much more stuff now are barely a quarter of that price.

    A 1989 5-door Hyundai Excel hatch would have been around the $11K mark, with four on the floor and bugger all more, now an I20 with electric everything, air bags aplenty etc would be buyable for maybe 15K on the road. Sadly the EA falcon or VN Commodore at $20K in '88 is now no longer buyable new as an Aussie made car, even though prices for the latest incarnations had only less than doubled to the 35K mark or just above...and again that's with all sorts of goodies.

    I am not sure how long this divergence of high cost of services done here by Aussies can continue when we export nothing else but dirt, some food and the right to live here with houses.
     
  4. Codie

    Codie Well-Known Member

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    Wow is that the current pension in Aus? That’s amazing.

    I know my grandma in NZ only gets around $220 a week/$440 fortnight.

    Not that I hope to need it but I wouldn’t complain if I received an Xtra $450 a week when I retire
     
  5. strongy1986

    strongy1986 Well-Known Member

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    Yeh I kind of agree but as long are making money out of real estate the trades can charge
    I guess when the average joe stops making packetloads on real estate then they will be less likely to think that spending 25k on a new kitchen is average or normal behaviour!
     
  6. Charlotte30

    Charlotte30 Well-Known Member

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    Dear Codie

    From the "Sorted" website

    Just to clarify current NZ Rates for single pension is $400.87 weekly for those living alone (as at Apr 2018). It is taxable but not means tested.

    Charlotte30
     
  7. MikeyBallarat

    MikeyBallarat Well-Known Member

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    $900 per fortnight? o_O Bugger saving for retirement. The Government will let me live like a king!!
     
  8. JohnPropChat

    JohnPropChat Well-Known Member

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    Past performance is not an indicator for future performance ...
     
  9. Phineas

    Phineas Well-Known Member

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    Cheese sandwich prediction is spot-on if we're going on airport prices...
     
  10. Omnidragon

    Omnidragon Well-Known Member

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    Ah yes certain Givenchy and Valentino shoes do costs $500+. In fact some costs $5000.
     
  11. MikeyBallarat

    MikeyBallarat Well-Known Member

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    Property investors don’t buy those types of shoes ;) people that live pay to pay do!
     
  12. marmot

    marmot Well-Known Member

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    I remember buying a T.V around 1998 and ended up getting a 2nd handex radio rentals T.V for about $400.It was about about 48cm.
    Last year we bought a 50 inch from JB for $599.
    Business learnt a long time ago if you want to sell more products ,just make it cheaper,the airline industry is a good example , when you compare prices to 20-30 years ago
    The exception to the rule is house/apartment prices, untill you run out buyers.
     

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