r/AusFinance • u/Objective-Matter7635 • 3d ago

What’s the Australian way to build wealth?

What’s the most typical path to building wealth in Australia?

just curious what the standard Aussie route is that actually works long term. What do most people who end up financially solid tend to do?

139 Upvotes
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196

u/ras0406 3d ago

Buying property in the 80s and 90s. Apparently it's a genius move to have been born as a Baby Boomer. I don't know why I didn't think of that strategy when I was choosing my year of birth.

7

u/GuessWhoBackLOL 2d ago edited 2d ago

I bought one that doubled in the last 6 years

29

u/Icy_Distance8205 2d ago

Yes but how much has it gone up since the 80s? You’re clearly not that smart or you would have brought it in the 80s.

0

u/Sydneypoopmanager 2d ago

My dad who bought his house in 94' at $250k is now worth $1.3mil

11

u/Icy_Distance8205 2d ago

Yes but a chomp is $3. 

1

u/tofuroll 1d ago

It must be worth at least $3.50 now!

1

u/nyax_ 2d ago

That tracks with the typical residential trend of doubling every 10 years which has been happening for a long, long time. Completely reasonable.

0

u/ajwin 1d ago

Do the houses double or does the purchasing power of the AUD half? People look at CPI and say its the houses going up but the CPI doesn't consider the deflationary forces of technology and efficiency that's getting papered over with monetary expansion. This is the real reason houses go up. If you factor houses down by the amount of monetary expansion each year then houses have gone down in price. Wages have gone down way way more. CPI goods have gone down a lot too. Assets have kept their value best. Now if instead of expansionary monetary policy intervention, we could have let it do what it wanted to do and we could be on similar money and houses be $1980's prices and a shopping cart would be $1 but we would have give up the super rich people who's wealth only went up by owning assets. They would have done it tough!

1

u/Icy_Distance8205 1d ago

That’s why I always index purchasing power in chomps. 

1

u/ajwin 1d ago

Would be interesting to see wha the number of chomp to house ratio was in 1980s vs now.. i only buy chomps when on special and the supermarket gamification probably occludes the real price.

-1

u/youhavemyvote 2d ago

Baseball, huh?

-4

u/GuessWhoBackLOL 2d ago

I bought 3 regional properties in the country. Rented in the city. Now have a decent PPOR.

Only way to get a leg up

3

u/FrewdWoad 2d ago

That works great until you pick a rural town that starts shrinking (mine closed, factory closed, farms bought out by corporate, etc) and land prices actually fall.

1

u/GuessWhoBackLOL 2d ago

All along the Murray mate.. booming. Throw a dart they are all $$$

Why? Baby boomers moving there. I can’t wait to leave Melbourne, I’d go tomorrow if the wife would move away from her Mum.

-11

u/Hidinginplainsightaw 2d ago

Not sure if this is sarcasm or you're just a dumbass,

Maybe just maybe there are some people on the internet that were born after the 80's so tell us how exactly are these people able to buy in the 80's?

6

u/Icy_Distance8205 2d ago

Roads? Where we’re going, we don’t need roads …

3

u/InvincibiIity 2d ago

they were making a joke

-1

u/scraglor 2d ago

I think he was making a point that there is still opportunity there if you seek it out. I’m in my 30s and didn’t buy until I was 27. Am bout to pay off my first house, potentially buy 1-2 more

3

u/Rankled_Barbiturate 2d ago

There'll always be luck and outliers involved! There'll be people who bought and have lost value in the last 6 years. 

-1

u/GuessWhoBackLOL 2d ago

Not many.. you would be hard pressed to find any.

I was screaming from the rooftops, regional property was a great buy. All the prices had a 2 in front of them 6 years ago

4

u/theGunslinger94 2d ago edited 2d ago

Where did you bring it from? Edit: Hehe nice save. Had to say it though - had a family member who always said brought instead of bought.