Tamara (Homes Down Under)

40 years of change

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    Very interesting. When it comes to property the power of hindsight!

     

    40 years of change: What we’re paying way more for

     

     

     

     

     

     


    • 3 days ago February 26, 2015 10:45AM

     

     

    198575-be48f56e-bc97-11e4-a5f5-f6d8716b3afa.jpg

    This 2-bedroom house in Blackburn, Victoria sold for $616,000, just above the median for Melbourne. Source: Supplied

     

     

     

    IF YOU were alive in 1975, it probably doesn’t feel like it was that long ago.

     

    In 1975, the Vietnam War ended; Medibank, Australia Post and Telecom (now Telstra) were formed; and Gough Whitlam was sacked.

    That was all 40 years ago.

    Much has changed in the four decades since those momentous events. Gen Ys, Gen Zs and Generation Alphas have been born. The internet, digital media, smartphones and social media took over our lives. Multiculturalism became a reality with Australia now a rich tapestry of different cultures.

    Back then, we watched Jaws. Now, we watch The Lego Movie.

    198274-f107aa90-bc97-11e4-a5f5-f6d8716b3afa.jpg

    1975 was all about Jaws. Source: Supplied

     

     

     

    In 1975, the Australian population was 13.7 million people while in 2015 we’re nearing 24 million. The median age in the country was in the late 20s while today it’s 37.3.

    But what else has changed? McCrindle Research has crunched the numbers:

    EARNINGS

    In 1975, the average full time earnings were $7618. Today, it’s almost 10 times more at $72,000.

    198629-849d36bc-bc93-11e4-a5f5-f6d8716b3afa.jpg

    We earn 10 times as much as we did in 1975. Source: Supplied

     

     

     

    BREAD

    Back then, a loaf of bread cost 24 cents. Today, it costs $2.84 — we’re talking about proper bread here, not the 85 cents stuff.

    198357-e20c70ca-bc92-11e4-a5f5-f6d8716b3afa.jpg

    Bread costs almost 12 times as much today. Source: Supplied

     

     

     

    MILK

    One litre of milk used to cost 30 cents. Now, it’s closer to $1.45 a litre.

    198713-936b6aa2-bc92-11e4-a5f5-f6d8716b3afa.jpg

    Milk costs five times as much. Source: Supplied

     

     

     

    NEWSPAPER

    The paper used to set you back 12 cents. Today, you’ll pay $2.50, about 20 times more.

    198789-3527bfb2-bc93-11e4-a5f5-f6d8716b3afa.jpg

    Newspapers are way more expensive than before. Source: News Limited

     

     

     

    PETROL

    You probably think petrol is now dirt cheap at $1.20 a litre after world oil prices tanked recently. Well, in 1975, petrol was 57 cents a litre. It’s only just over double the cost.

    198841-237162a0-bc93-11e4-a5f5-f6d8716b3afa.jpg

    You think your petrol is cheaper now? Bet 57 cents a litre sounds even better. Source: News Corp Australia

     

     

     

    HOUSING

    Property is where the really scary figures come out.

    In Sydney, the average house cost $28,000 in 1975. Today, it costs $850,194. That’s 30 times as much as it used to be. Your 10-times as much annual earnings isn’t looking too great right now, huh?

    198895-be9e48f2-bc97-11e4-a5f5-f6d8716b3afa.jpg

    This 2-bedroom terrace in Erskineville sold for $837,000, just below the Sydney median. Source: realestate.com.au Source: Supplied

     

     

     

    Melbourne is even worse, at 31 times the cost of 1975. Back then, the average house was $19,800. Now, it’s $615,068.

    In Brisbane, it’s 27 times higher from $17,500 to $473,924.

    In Adelaide, it’s 28 times higher from $16,250 to $459,258.

    In Perth, it’s 32 times higher from $18,850 to $604,822.

    In Canberra, it’s 21 times higher from $26,850 to $573,326

    In Hobart, it’s 21 times higher from $15,200 to $322,274.

     

     

    YOUNG PEOPLE

    Demographer Mark McCrindle said that while in some areas, the cost has been maintained but it’s in our demand and supply model of housing where the cost has blown out.

    “There are 10 million more people than there was 40 years ago,” he said. “Households are a bit smaller so we need more homes than we used to and there are also foreign buyers and investors as well. So there’s a lot more demand than supply.”

    Mr McCrindle said Australians should expect the rising cost of housing to continue and that young people will be in a much tougher situation than their parents were.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    How to pay off your home loan faster

     

     

     

     

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    What a great thread. I think property is a good investment especially in the right areas. I can remember a packet of crisps for 2p, a pint of beer 54p, oh dear I'm showing my age.

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    I remember being able to get on the bus for 2p when I was a kid. And 10p mix would get you quick a few sweets. 10p probably wouldn't get you much at all these days. Property prices are stupid though. At some point houses are just going to stop being affordable for many people.

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