I was a bit too young to remember the "old" days , but i too see a price explosion, due to the shortfall of housing stock, trades are getting dearer, as there mortgages are now alot larger than the past ,
i was explaining it to my younger off sider, this way, ?
when you were at school how much was a paddel pop ice cream, he said 80c well in my day they were 25c and now they are $2.50 so if you bought them 20 years ago at 25c the gain in the product is yours,
so in ten years from now they might be $5.00 and people would still be buying them , he agreed, so same with property, the loan on a 500k home would be serviced at the 250k price,
he understood this better, and is saving for his first IP at 20yrs old, good on him.
i was explaining it to my younger off sider, this way, ?
when you were at school how much was a paddel pop ice cream, he said 80c well in my day they were 25c and now they are $2.50 so if you bought them 20 years ago at 25c the gain in the product is yours,
so in ten years from now they might be $5.00 and people would still be buying them , he agreed, so same with property, the loan on a 500k home would be serviced at the 250k price,
he understood this better, and is saving for his first IP at 20yrs old, good on him.