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Old 09-06-2017, 12:42 PM   #133
b0son
FF.Com.Au Hardcore
 
Join Date: Feb 2005
Posts: 4,992
Default Re: Australia housing bubble

Quote:
Originally Posted by fordomatic View Post
I'm not trying to blow my trumpet i'm just saying I am over people saying it's too hard, it's not. I'm a simple bloke with a simple job
So lets create a simple analogy.

Lets say cars cost 1 year of pay, and have done for years and years. You buy one. Lets say for whatever reason, something happened to start to push up the price of cars and now they cost 3 years of pay.

Lets say it takes you 5 years to pay off your car. The guy who decides to buy a car now that they cost 3x more, will be repaying his for around 20 years. Now lets compare you with him.

Over a 20 year period, you have 15 years of not having to make payments, that you can now save/invest/etc. The guy that paid 3x more is still just paying his off.

When you both retire, you will do so with the advantage of 15 years extra $$$ saved on those repayments you didnt have to make. Are you going to say you both lived under the same economic conditions, and that you simply worked harder to account for your greater prosperity?
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