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> In late 1980s Melbourne, Australia my dad and his best friend were accountants and bought their houses for ~$40,000AUD, ~3 times their annual income. Accordin
by foogazi 7y ago
> In late 1980s Melbourne, Australia my dad and his best friend were accountants and bought their houses for ~$40,000AUD, ~3 times their annual income. According to the best friend, this was considered a lot to pay for a home
Something has to have changed since then.
What was the interest rate like back then and what kind of terms did he get for his loan?
(edit spelling)
- thundergolfer 7y ago> Something has to have changed since then. In 35 years an awful lot has changed. What are you thinking specifically? Interest rate wouldn't be too hard to find, though it'd be a lot of trouble to find out the terms of the loan. One thing I can comfortably say though is that they'd been living at home and saving for a while, so could pay quite a lot of the full housing cost up front. Maybe 30-50%. Nowadays it's a joke to think about doing a 50% down payment on a 1-2 million dollar home.
- foogazi 7y agoI was thinking maybe it was a time when purchases were made in cash or seller financed But siem already posted that interest were around 17% and someone else mentioned 10% inflation in the eighties Then you throw in immigration and global markets and a somewhat clearer picture emerges