If you were around in the 70's which I doubt, the price of real estate doubled, this this infaltionary effect was directly caused by the excesses of the Govt' of the day, the same mob that are in today.
So property doubled in the 70's when you had rampant inflation 2 to 3 times higher than now...and property doubled in 4 or 5 years under howard when we had low inflation...and your point is?
Are you saying that property will double again in a few years now that rudd is in...so the 150k house in 2000 selling for 400k now will be 800k in 5 years and my wage will be maybe 70k in 5 years even if inflation is very high...and when inflation is high everything costs more so business lays more people off.
Great in 5 years i might be paying 11x gross wages for the average property and having even less money for my bills such as food and electricity...and what will interest rates be then 10%?
Imagine 10% interest rates on an 800k house...thats $1600 per week after tax...my after tax pay would be a little over $1000k per week...maybe i will just buy a caravan...expect a few more bag snatchers and break and enters coming to a suburb near you...if they can afford the fuel to get there.
Even as I have been saving 10k a year over the last few years i am falling behind faster and faster...there is no point saving anymore really is there?
