A few days ago, NFN principal Mike uncovered an old Gold Coast Bulletin from 1995.

And being the real estate advertising nerd that I am, I couldn’t help but to go right to the real estate section. You see, being Marketing Manager means that I am responsible for all of our property adverts, whether online or in print. I have watched writing styles evolve into what they are now. And after 5 years of watching property prices changing from an objective position, I have noticed a lot of trends.

Looking at the old adverts, the prices of homes back then didn’t really surprise me, but it made me think: are people over reacting to the latest downturn in property prices?

 During this 13 year period, what happened during that time that isn’t happening now? Threat of recession, worry about the stock market? Yet, house prices have still risen.

My parents bought their first home in the early 90’s for $132,000 and later sold it  for almost $400,000.

About 2 year later, they wished they had waited longer to sell to get a higher price, even though at the time they had no choice as they were moving interstate.

Hmmmm…

When I got my first job at 15, my pay was $4.20, including loading.
In 2001, I rented my first home in the centre of town, a 2 bedroom unit, for $105 a week.

I survived only $150 a week, from which I paid my half of the rent, got food and still had enough to go partying.

13 years ago, you could buy a 4 bedroom, 2 bathroom house in Nerang for well under $200,000. Now, you would pay over double that.

Now, $150 wouldn’t cover my groceries, let alone my rent, and I am proud to say, I earn more than $4.20 per hour.

We all earn more, and we all pay more for everything compared to 1995.

Going through more adverts from over the years, you can watch the “Real Estate Cycle” – prices start low, then go higher, then lower, pretty much what we are seeing now.

I bought my first home 2 years ago, just before the mini-boom, and have watched my investment grow rapidly, and then decline again. However, I also know that the current value of my home far exceeds what I paid for it. Even if I did decide to sell now, I would have enough to pay off my credit card and my car, plus have a healthy deposit for my next house.

So, yes, prices are going down and the stock market is going down. But let’s look on the bright side: it is going to go back up; its only logical.

If you are looking to buy your first home or an investment property, now would be the best time! Interest rates are low, and there are a lot of great buys out there.
<!–[if !supportLineBreakNewLine]–>
<!–[endif]–>

And if you are looking to upgrade or sell, try to think of it this way:
If you paid $150, 000 for your home 10 years ago, it was worth $400,000 1 year ago and $370,000 now, you haven’t lost any money.

It also means you might just have a tidy deposit for your next home!

Other Related posts:

1. Local Property Market Starts 2009 With A Bang! The question on top of many home owners minds right now is how how the...
2. First Home Buyers Celebrate 2008 will be remembered for a lot of things but one of them was the...

Tagged: property slump, real estate prices

Follow: Subscribe to this post's comments