{"id":1237,"date":"2021-12-15T19:24:21","date_gmt":"2021-12-15T19:24:21","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/imagine-if-you-could-go-back-in-a-time-machine-and-buy-a-property-50-years-ago\/"},"modified":"2021-12-15T19:24:21","modified_gmt":"2021-12-15T19:24:21","slug":"imagine-if-you-could-go-back-in-a-time-machine-and-buy-a-property-50-years-ago","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/imagine-if-you-could-go-back-in-a-time-machine-and-buy-a-property-50-years-ago\/","title":{"rendered":"Imagine if you could go back in a time machine and buy a property 50 years ago"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div id=\"toc_container\" class=\"no_bullets\">\n<p class=\"toc_title\">Please use the menu below to navigate to any article section:<\/p>\n<\/div>\n<p><strong>Hindsight is a wonderful thing, isn\u2019t it? <img fetchpriority=\"high\" decoding=\"async\" class=\"alignright wp-image-158312 img-responsive\" alt=\"03\" width=\"260\" height=\"195\" sizes=\"(max-width: 260px) 100vw, 260px\" data-loading=\"lazy\" src=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/10\/03-3-300x225.jpg?quality=70&amp;f=auto\" srcset=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/10\/03-3-300x225.jpg?quality=70&amp;f=auto 300w,&#10;https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/10\/03-3.jpg?quality=70&amp;f=auto 800w,&#10;\"\/><\/strong><\/p>\n<p>Let me ask you a question\u2026<\/p>\n<p>With the benefit of hindsight and knowing what you know now if you had the opportunity to use a time machine and could go back to 1973, would you buy an investment property?<\/p>\n<p>By the way\u2026I\u2019d already bought my first investment property by then.<\/p>\n<p><strong>Back in 1973 median house prices and rents across Australia\u2019s capital cities looked like this:<\/strong><\/p>\n<ul>\n<li>Sydney \u2013 $27,400, rent $26 per week<\/li>\n<li>Melbourne \u2013 $19,800, rent $19 per week<\/li>\n<li>Brisbane \u2013 $17,500, rent $17 per week<\/li>\n<li>Adelaide \u2013 $16,250, rent $15 per week<\/li>\n<li>Perth \u2013 $18,850, rent $18 per week<\/li>\n<li>Canberra \u2013 $26,850, rent $26 per week<\/li>\n<li>Hobart \u2013 $15,200, rent $14 per week<\/li>\n<\/ul>\n<p>So, if you used that time machine, at those prices you could probably buy any house in the capital city of your choice on your credit card.<\/p>\n<h2><span id=\"two-problems\">Two problems<\/span><\/h2>\n<p>Firstly, credit cards weren\u2019t around in Australia in those days \u2013 the BankCard was only introduced in 1974 and\u2026<\/p>\n<p>For those looking to buy a home back then, houses prices were very, very expensive.<\/p>\n<p>According to the Australian Bureau of Statistics, the average weekly wage in 1973 was $111.80.<\/p>\n<p>By the way\u2026to purchase my first investment in Melbourne 50 years ago I went halves with my parents, we paid $18,000 and took on a 30-year mortgage of $16,000 and had no idea how we were going to pay it off.<\/p>\n<h2><span id=\"things-are-very-different-these-days\">Things are very different these days.<\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignright size-medium wp-image-133324 img-responsive\" alt=\"Save Money\" width=\"300\" height=\"217\" sizes=\"(max-width: 300px) 100vw, 300px\" data-loading=\"lazy\" src=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2019\/04\/save-money-300x217.jpg?quality=70&amp;f=auto\" srcset=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2019\/04\/save-money-300x217.jpg?quality=70&amp;f=auto 300w,&#10;https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2019\/04\/save-money-957x692.jpg?quality=70&amp;f=auto 957w,&#10;https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2019\/04\/save-money.jpg?quality=70&amp;f=auto 1160w,&#10;\"\/>CoreLogic\u2019s Hedonic price index for October 2021 shows the following median house values:<\/p>\n<ul>\n<li>Sydney \u2013 $1,311,641<\/li>\n<li>Melbourne \u2013 $962,250<\/li>\n<li>Brisbane \u2013 $709,136<\/li>\n<li>Adelaide \u2013 $575,949<\/li>\n<li>Perth \u2013 $548,351<\/li>\n<li>Canberra \u2013 $956,119<\/li>\n<li>Hobart \u2013 $704,321<\/li>\n<\/ul>\n<h2><span id=\"a-few-other-things-have-changed\">A few other things have changed.<\/span><\/h2>\n<p>Back in 1973, the standard variable interest rate on your loan was around 7.5%, so your repayments on a <a aria-describedby=\"tt\" href=\"https:\/\/propertyupdate.com.au\/glossary\/81057\/\" class=\"glossaryLink\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Median Price&lt;\/div&gt;&lt;div&#10;class=glossaryItemBody&gt;The median price is the sales price where half the sales are above and half the sales are below it.Basically, it\u2019s the middle price\u00a0of a number of properties for sale in a given time.This is different to the average of mean selling price for properties.The best way to explain the difference(...)&lt;\/div&gt;\">median price<\/a> Sydney home would be have been around $40 a week or around 35% of your weekly wage if you could borrow 100% of the property value and paid interest only.<\/p>\n<p>Of course, back then you couldn\u2019t.<\/p>\n<p>The banks required you to pay a minimum 25% deposit, you had to pay back principal and interest and the banks did not accept your wife\u2019s income in calculating your serviceability.<\/p>\n<p>Today, the average wage is $1,737.10 according to the <a href=\"https:\/\/www.abs.gov.au\/statistics\/labour\/earnings-and-work-hours\/average-weekly-earnings-australia\/latest-release#key-statistics\" target=\"_blank\" rel=\"noopener\">ABS<\/a>\u00a0and you\u2019re likely to have an interest rate with a 2 in front of it.<\/p>\n<p>This means servicing a mortgage is not the problem, even for many first home buyers \u2013 saving a deposit is.<\/p>\n<p>On the other hand, many established homeowners have significant equity in their homes and today\u2019s low-interest rates make it easy to upgrade to better accommodation.<\/p>\n<p>Sure <a aria-describedby=\"tt\" href=\"https:\/\/propertyupdate.com.au\/glossary\/apra\/\" class=\"glossaryLink\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;APRA&lt;\/div&gt;&lt;div&#10;class=glossaryItemBody&gt;The Australian Prudential Regulation Authority (APRA) is an independent statutory authority that supervises institutions across banking, insurance and superannuation and promotes financial system stability\u00a0in Australia&lt;br\/&gt;Prudential regulation is concerned with maintaining the safety and soundness(...)&lt;\/div&gt;\">APRA<\/a> is trying to slow our markets down, but there\u2019s still plenty of momentum left in this property cycle.<\/p>\n<p>As a property investor, you need to take a long-term outlook and it will be interesting to see what property values will be in 50 years\u2019 time.<\/p>\n<h2><span id=\"here-are-2-lessons-i-wish-i-knew\">Here are 2 lessons I wish I knew<\/span><\/h2>\n<p>However, if I could go back in time there are 2 lessons I would tell my younger self\u2026<\/p>\n<p><em><strong>1. There are always risks associated with investing.<\/strong><\/em><\/p>\n<p>Don\u2019t be afraid of failing, because the biggest risk is not doing anything to protect your financial future.<\/p>\n<p><img decoding=\"async\" class=\"alignright size-medium wp-image-155957 img-responsive\" alt=\"Risk Factor\" width=\"300\" height=\"225\" sizes=\"(max-width: 300px) 100vw, 300px\" data-loading=\"lazy\" src=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/08\/risk-factor-300x225.jpg?quality=70&amp;f=auto\" srcset=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/08\/risk-factor-300x225.jpg?quality=70&amp;f=auto 300w,&#10;https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/08\/risk-factor.jpg?quality=70&amp;f=auto 800w,&#10;\"\/>Sometimes negative experiences, mistakes, and failures can be even better than success because they teach you something new which another win could never teach you.<\/p>\n<p>However, we are often so driven to get things right that we fail to see the value in the things we get wrong.<\/p>\n<p>Instead, we spend our time wishing we had done it differently.<\/p>\n<p>Or not doing anything at all because of the fear of making mistakes paralysing us.<\/p>\n<p>If you get it wrong, learn from your mistake and make it count by doing it differently next time.<\/p>\n<p>One \u201cfailure\u201d can \u2013 with time \u2013 help you create many successes.<\/p>\n<p><em><strong>2. Don\u2019t waste your time worrying.<\/strong><\/em><\/p>\n<p>Most things you fear will happen, never do.<\/p>\n<p>They\u2019re just monstering your mind.<\/p>\n<p>And if they do happen, they\u2019ll most likely be not as bad as you expected.<\/p>\n<p>Time spent worrying is time that you could spend identifying opportunities and taking action.<\/p>\n<p><span style=\"color: #ff9900;\"><strong>ALSO READ: <\/strong><\/span><a href=\"https:\/\/propertyupdate.com.au\/where-should-i-buy-my-next-investment-property-in-australia\/\" target=\"_blank\" rel=\"noopener\">Where should I buy my next investment property in Australia?<\/a><\/p>\n<aside><strong style=\"clear: both; margin: 40px 0 20px 0; font-size: 24px; color: #000000; font-family: Oswald, Regular; font-weight: 400; line-height: 1.1;\">Now is the time to take advantage of the opportunities the current property markets are offering<\/strong><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-139884 img-responsive\" alt=\"Metropole\" sizes=\"(max-width: 1160px) 100vw, 1160px\" data-loading=\"lazy\" src=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/05\/metrople-team.jpg?quality=70&amp;f=auto\" srcset=\"https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/05\/metrople-team.jpg?w=400&amp;quality=70&amp;f=auto 400w,&#10;https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/05\/metrople-team.jpg?w=800&amp;quality=70&amp;f=auto 800w,&#10;https:\/\/cdn.statically.io\/img\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/05\/metrople-team.jpg?w=1160&amp;quality=70&amp;f=auto 1160w,&#10;\"\/><\/p>\n<p>Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.<\/p>\n<p>You can trust the team at Metropole to provide you with\u00a0<strong>direction<\/strong>,\u00a0<strong>guidance<\/strong>,\u00a0and\u00a0<strong>results<\/strong>.<\/p>\n<p>Whether you\u2019re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that\u2019s exactly what you get from the multi-award-winning\u00a0<a href=\"https:\/\/metropole.com.au\/meet-the-team\/?utm_source=pu-postender&amp;utm_medium=referral\">team at Metropole<\/a>.<\/p>\n<p>We help our clients grow, protect and pass on their wealth through a range of services including:<\/p>\n<ol>\n<li><strong>Strategic property advice<\/strong>\u00a0\u2013 Allow us to build a <strong>Strategic Property Plan<\/strong> for you and your family.\u00a0 Planning is bringing the future into the present so you can do something about it now! <a href=\"https:\/\/metropole.com.au\/strategic-property-plan\/?utm_source=pu-postender&amp;utm_medium=referral\">Click here to learn more <\/a><\/li>\n<li><strong>Buyer\u2019s agency<\/strong> \u2013 As Australia\u2019s most trusted buyers\u2019 agents we\u2019ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective \u2013 that\u2019s something money just can\u2019t buy. We\u2019ll help you find your next home or an investment-grade property.\u00a0\u00a0<a href=\"https:\/\/propertyupdate.com.au\/investor-enquiry\/?utm_source=postender&amp;utm_medium=internallinks\">Click here to learn how we can help you<\/a>.<\/li>\n<li><strong>Wealth Advisory<\/strong> \u2013 We can provide you with strategic tailored financial planning and wealth advice. <a href=\"https:\/\/wealthadvisory.metropole.com.au\/?utm_source=pu-postender&amp;utm_medium=referral\">Click here to learn more about we can help you<\/a>.<\/li>\n<li><strong>Property Management<\/strong> \u2013 Our stress-free property management services help you maximise your property returns. <a href=\"https:\/\/propertymanagement.metropole.com.au\/?utm_source=pu-postender&amp;utm_medium=referral\">Click here<\/a> to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.<\/li>\n<\/ol>\n<\/aside>\n<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/propertyupdate.com.au\/imagine-if-you-could-go-back-in-a-time-machine-and-buy-a-property-50-years-ago\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Please use the menu below to navigate to any article section: Hindsight is a wonderful thing, isn\u2019t it? Let me ask you a question\u2026 With the benefit of hindsight and knowing what you know now if you had the opportunity to use a time machine and could go back to 1973, would you buy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,39,37,76,77,38,81],"tags":[],"class_list":["post-1237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-homepage-top","category-latest","category-michael-yardney-blog","category-michael-yardneys-commentary","category-property-investment","category-weekly-latest"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Imagine if you could go back in a time machine and buy a property 50 years ago | Urban Buyer: Buyers Agent &amp; Advocates | Best Property Buyers For You<\/title>\n<meta name=\"description\" content=\"Please use the menu below to navigate to any article section:Hindsight is a wonderful thing, isn\u2019t it? 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