ABCD......

House Prices 1973 and 2014 from Domain.com.au

A comparison of house prices done by Domain.com.au show that Perth (3,109%) has risen faster than the other States, with Hobart in Tasmania (2,020%) having the smallest increase. (Darwin is not compared as full data is not available). All property has risen faster than wages though, with wages only having risen by 1,200%.
According to the Domain report:

swans

One problem,think for yourself instead of letting domain think for you.

There is no accurate data for houses,never will be.How does a 4bed2 bath mcmansion on a small block of land compare to a 2 bed 1 bath wood or fibre board house back then.

Back then you bought the house and land deal,then you added fences,painted it,put carpets in,added curtains etc etc.Today they are landscaped have air conditioning,fences,carpets,curtains.That is all free, or added to the price of the house when you buy it.

Your wage data,dear me.Back then average wages were around $60 per week.This may be a bit of a shock to you but 12x$60 is $720.Would you say that is anywhere near average wages today,or nowhere near.

Totally different times,high inflation,protectionism,in general one person in the household working rather than 2,but it was changing rapidly.High interest rates,no China to produce cheap goods and export deflation to all parts of the world,everything was expensive.From memory inflation hit 35% at the peak and wage rises were 36%.

There are loads of other things of that nature that I could point out but what about you thinking and looking for reality

You think for yourself and find out the facts,or let domain do your thinking for you.Please yourself

The human race will never change,if the facts don't fit in with what they want to see then the facts are wrong,there is no other possible reason.

Remember the article said,the expert said,the opinion poll said.They will get very little if anything right,simply because they see what they want to see.

Geordie downunder

Amazulu

Why are you always so angry?

ABCD......

I actually agree totally with you on most of that.

If we all lived in the same type of house as back in 1973, then we would probably be paying half the price. Other than the land size and land cost problem. 1973 was the time of a quarter acre plot. Now we are looking nearer to half that size.

The only accuracy of the data though is in what it actually states it is, the average rise of houses at each point in time. No attempt is made to deviate from the specifics of the fact that the price we pay for houses has, on average, risen by those percentages.

ABCD......

Your wages figure is at odds with both the ATO and the ABS figures, both of which show a figure about twice yours. I agree I was a bit shocked by your $60, but as I check things first without just believing what is written by anyone, I didn't have a problem. And I do agree that 12x$60 is $720, but can't see the relevance of where 12 weeks at $60 per week comes into it.

This is what I worked on:

Australian WAGES 1973 and 2014

1973: the average weekly wage was $111.80 (including full- and part-time workers)
2014: a full-time worker makes on average $1,453.90 weekly in 2014
However, the average May 2014 weekly wage was $1,123.00 (including full- and part-time workers)

swans

I got the average wage figures wrong.The $60 was the poverty line,my figures are average wages approx $101 per week.(source rentons facts and figures average wage data).He says his source is ABS he claims.Figures are quarterly,so $101 for end june quarter.I think$111 for the whole year average would be right.Very high inflation for the 1970s and 80s,from memory the next year wages rose 36%.

I,m at home in Thailand and the book is in oz so I can't check it,but I was definately wrong.

The 12 isn't weeks,it is the multiple that wages have risen over the years.So 12 x$60 is $720,would the poverty line today be around $720 per week.Then of course 12x $111 would be $1332,less than average wages but close enough for me.The figures will always be slightly rubbery.

More interesting would be mortgage rate data,assume the rate was 10% in 1973.I'm too lazy to look but I think you said around 17K for perth.Borrow the full amount so the interest would be $1700 per annum,annual wages (rounded)$5800,so around 30% of annual wages to pay the interest.Today I can get money at 4.65% for a mortgage (CUA).Same maths,550K @4.65% is 25.575K,average wages around 75K.34% of average wages to pay the interest,not a lot in it is there.Thank god I think for myself instead of letting experts and popular opinion do my thinking for me..

I would be very interested to see m/gage rates in 1973(a bad year,mackems won the cup).

As a slight arbitrage play,I'm borrowing money on property @4.65%.The rent comes in from the property.The money I borrow goes into the stock market for a 5.5% yield roughly,4% yield roughly on the property.Can you guess what I'm doing at the minute.(hint ,dividend stripping is involved)
Geordie downunder.

ABCD......

RBA F5: Lending rates; Housing loans; Banks; Variable; Standard

The RBA F5 rate was 7.00% until October when it increased to 8.38%

The corresponding rate in 2014 is 5.95%

Source: Average Mortgage Rates in Australia » ABCDiamond
5.88 % from Aug-1968 to Mar-1970 20 months at this rate
7.25 % from Apr-1970 to Jan-1972 22 months at this rate
7.00 % from Feb-1972 to Sep-1973 20 months at this rate
8.38 % from Oct-1973 to Jun-1974 9 months at this rate
10.38 % from Jul-1974 to Mar-1975 9 months at this rate

swans

Yes.I spotted the obvious after a while and googled it,always takes a while to to see the bleeding obvious.

Loansense give the figures you give with 10.38 for july 74,but 5.51 for now.All variable rates.The figures are still rubbery but that would have to be the constant,You can get money at less than 5.51 today,I don"t think they had the same range of financial products then,but I could be wrong.

The constant that will be there for evermore will be the crowd and the experts will get very little right,if anything.They'd be running around like headless chooks bleating that nobody could afford to buy a house back then,they run around like headless chooks today saying exactly
the same thing.That wonderful Charles Mckay book title from around 1860 "popular delusions and the madness of crowds".

Geordiedownunder

bobbyftm

Twas on the 5th of May, 1973 oh what a *****in day !

OzTennis

Interesting to think back to that time. I remember we had a party at the tennis club in Melbourne and watched the FA cup final live - all the way from London which seemed a miracle at the time to be watching events on the other side of the globe! We can also reflect on our mortality - Ian Porterfield is no longer with us.

What Happened in 1973 including Pop Culture, Prices, Events and Technology

rasen78

I was born....apart from being a medical miracle, t'was a bloody marvellous thing to happen

Irish Guinness

swans

Watched it a mates house,he had one of new fangled colour TVs.Everybody left the pub early to watch it.Billy Hughes with that strange running style of his seemed to cover every blade of grass 6 times.Ritchie Pitt cutting Alan Clarke in two with a tackle in the first few minutes,he'd be banned for life now for that.

Porterfield was going to be the new Jim Baxter when they signed him around 68 ish Ithink.He was a good player but he also matched Baxter in the sport of beer drinking.He crashed his car drunk,fractured skull,and was never the same again.

Next year was a disaster,Newcastle didn't turn up after the big build up ,probably the most one sided cup final ever,really embarrassing.

Around 67 ish your team of drunken jocks decided to put in a shift.Won both games 3-0 at st james and Joker park,never did much after that.People would go to watch both teams then.I could watch George Herd all day long,very clever little player,I think they bought P/field to replace the big gap he left when he retired.