Buyer’s Agent Specialising in Brisbane

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I recently came across this….

Buying power
Buying power changes over time

A 20 cent coin from 1970.

I started reminiscing.. because even though I put my kids through endless hours of 1980’s music on our car trips I also remember going to school briefly in the 1970’s when this coin could buy you a packet of chips or a meat pie at the school tuckshop and you might expect change from your purchase as well.

The 1970’s was famous for many things, one being high inflation… Witness..

inflation by year in Australia during the 1970’s::

1970: 3.44%
1971: 6.14%
1972: 6.02%
1973: 9.09%
1974: 15.42%
1975: 15.16%
1976: 13.32%
1977: 12.31%
1978: 8.00%
1979: 9.12%

There was an oil shock, stock market crash, war in Vietnam, removal of the gold standard and may other tumultuous forces that were feeding into these numbers during the 70’s

May we never relive those inflation levels during the current economic cycle.

The median house price in Sydney in 1970 was only $18,700 (Average full time wage was $4,100) and by 1980 it was $76,500.

It was a wonderful decade to be owning real estate.

In times of high inflation hard assets tend to do well, assets that can’t be printed or created in digital factories…. like credit, these assets include commodities (oil, gas, energy, precious metals etc) and.. of course real estate.

Returns like the 1970’s are unusual and I wouldn’t expect similar this decade, but it’s just a reminder to myself that in high inflation decades I’m happy to be owning physical real estate.

About the author

Andrew Allen

Andrew Allen

Founder and Managing Director of Allen Real Estate, Andrew Allen, grew up in Brisbane and watched its transformation from large country town to vibrant, in-demand city.

WHAT OUR CLIENTS SAY

We worked with Micah. He was extremely
patient, made effort in educating us rather
than just telling us what we should do, and was always available to talk/guide.

I would strongly recommend Micah to any prospective buyer and would be happy to be a reference if required.

Robin, Sunshine Coast

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We would highly recommend Andrew Allen
Real Estate. Micah was prompt, patient and
so easy to work with. He has an indept
understanding of the Brisbane property
market and his advice

Thanks once again for a great service.

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