Yes i know this is where you become unstuck when you are not...

  1. 2,796 Posts.
    Yes i know this is where you become unstuck when you are not good with maths and how money works.

    When houses went from $50K to $100K it was because the Australian $1 devalued due to inflation, which meant you needed twice as many, just like you needed twice as many dollars to pay wages. Which is why it wasnt a problem on paying the mortgage.

    The value of the house didnt go up, it was still worth the same amount, selling it when it was $50K means you would have got the same stuff had you sold it when it was $100K

    Since 1999 house prices have more than doubled against inflation. Which is why now its a problem against wages and in a bubble.
    Last edited by Steve70: 13/06/15
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.