If you look back at historical interest rates there were periods of high rates in the 70's to try and control inflation but the speed at which they rose in the late 80's was brutal. Thats probably what broke many people, it would be like buying a house on your credit card now and trying to survive with a interest rate in the high teens.
Will Australia's next property boom be the greatest boom we've ever seen?
- Thread starter Shadow
- Start date
You appear to be taking that chart rather seriously? You do see the scale that goes through the roof to moon, right?
Actually, the chart is 100% accurate, and further evidence of my awesome forecasting ability. Everything shown on the chart has happened exactly as I predicted.
actually you have edited the chart yet again in your photobucket account and saved it with the same name to ensure any previous posts with that link now show your sanitised version of history.
I guess this is how you try to support your 80-90 % claim of prediction accuracy.
What you didn't realize is that googlecache still had your thumbnail of the original chart.. even the link back to here on Somersoft.
I think prior to recession high inflation caused increased wages which led to increased rents. The actual relationship would be dependent on many factors including supply and demand. The increasing wages or increasing inflation relationship is a little like the chicken and the egg. 1970s inflation seems to have been more to do with oil prices spiking and our dependence on it but I could be wrong.
Sorry, you're not making any sense. What are you saying?
I think buying a PPOR with a long-term mindset now would still be an OK decision, because even after this boom ends, and Sydney prices correct, they probably won't fall below current levels.
However I think buying an IP now would be pointless as there is limited scope for significant capital gain over the next decade.
