guys, below is the historical inflation rates, probably an average of over 10% p.a.
since 1990 we have probably averaged around 2% inflation p.a.
im not old enough to remember those years but i remember stories where my dad told me he used to earn $50 a week or he bought his 1st house for $6000 etc.
we all hear high inflation is coming in the years to come.
do u think we are about to experience the same scenario our dads did back then? are wages about to double over the next 5 years? will property prices double along with wages. will bread cost double in 5 years?
sorry im not the best at explaining my thoughts but i guess you get my drift.
this happened in the past. it hasnt happened in my working life, wages on the average have not doubled in the past 10 years or so. but this was happening in the 80's and 90;s with high inflation.
is this whats in store for us in the coming years guys?
maybe someone can explain it better than me but i see this as a big possibility.
if in 6 months or so u were to buy a house (closer to the bottom) for $350,000 with a $300,000 loan fixed for 5 years at around 5.5%. In 5 years this asset could be worth double due to double digit inflation with a small loan.....
do u see high inflation year after year as per below historical figures?
1990 - 7.2784%
1989 - 7.5482%
1988 - 7.2564%
1987 - 8.4906%
1986 - 9.0845%
1985 - 6.7424%
1984 - 3.9370%
1983 - 10.0520%
1982 - 11.2289%
1981 - 9.6144%
1980 - 10.1863%
1979 - 9.0794%
1978 - 7.9507%
1977 - 12.3172%
1976 - 13.3508%
1975 - 15.1759%
1974 - 15.2955%
1973 - 9.2405%