property for nickoo, page-14

nickoo you state "Where is the money going to come from to support a 10% rise in property"

The same place it came 5,10,15,20,25 years ago when the same question was asked.

Wages

I'm not sure of your age Nickoo but you must realize that what you bought 5 years ago was a lot cheaper than it is now. (can of coke packet of chips cigarettes alcohol)

I stated in another post in the banking industry in the last 15 years salaries have threefolded.

History is the only thing we can go on without a time machine or crystal ball but 25 years ago I can remember buying a Freeza (raspberry flavoured iceblock) for 6c. Lets assume that the canteen was working on 50% margins ie they made 3c. Today i see that freezas are now 70c thats quite an increase 11x in 25 years.If the margin is still 50% why doesn't the shop sell them for 38c they would still make the 3c they were happy with 25 years ago.

Fact 3c wont buy you jack in todays market.

Fact Pays are alot more today than they were 25 years ago.

Fact Australia's population is increasing therefore the demand on real estate will also increase.