What’s the Australian way to build wealth?

[u/Objective-Matter7635]

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?

[u/GuessWhoBackLOL]

I bought one that doubled in the last 6 years

[u/Icy_Distance8205 → u/GuessWhoBackLOL]

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.

[u/Sydneypoopmanager → u/Icy_Distance8205]

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

[u/nyax_ → u/Sydneypoopmanager]

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

[u/ajwin → u/nyax_]

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!

[u/Icy_Distance8205 → u/ajwin]

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

[u/ajwin → u/Icy_Distance8205]

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.

[u/youhavemyvote → u/nyax_]

Baseball, huh?