Australian Politics Forum - If the price of houses doubles every seven years..

BatteriesNotIncluded Gold Member Offline MediocrityNET: because people died for this! Posts: 26966	If the price of houses doubles every seven years.. Jan 14^th, 2015 at 6:53pm ..how does it happen?
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Ex Dame Pansi Gold Member Offline Australian Politics Posts: 24168	Re: If the price of houses doubles every seven years.. Reply #1 - Jan 30^th, 2015 at 2:22pm It doesn't, otherwise houses would cost..... lot's you work it out.....how much was the first house sold for? Say it was built in 1800 for argument sake. Someone can work it out.....thanks in advance.
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BatteriesNotIncluded Gold Member Offline MediocrityNET: because people died for this! Posts: 26966	Re: If the price of houses doubles every seven years.. Reply #2 - Jan 30^th, 2015 at 2:30pm Ex Dame Pansi wrote on Jan 30^th, 2015 at 2:22pm: It doesn't, otherwise houses would cost..... lot's you work it out.....how much was the first house sold for? Say it was built in 1800 for argument sake. Someone can work it out.....thanks in advance. I too will wait
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greggerypeccary Gold Member Offline Australian Politics Posts: 143967 Gender:	Re: If the price of houses doubles every seven years.. Reply #3 - Jan 30^th, 2015 at 2:30pm Ex Dame Pansi wrote on Jan 30^th, 2015 at 2:22pm: It doesn't, otherwise houses would cost..... lot's They DO cost lots. The rule of 72.
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BatteriesNotIncluded Gold Member Offline MediocrityNET: because people died for this! Posts: 26966	Re: If the price of houses doubles every seven years.. Reply #4 - Jan 30^th, 2015 at 2:32pm greggerypeccary wrote on Jan 30^th, 2015 at 2:30pm: Ex Dame Pansi wrote on Jan 30^th, 2015 at 2:22pm: It doesn't, otherwise houses would cost..... lot's They DO cost lots. The rule of 72. The rule of 72?
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greggerypeccary

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Re: If the price of houses doubles every seven years..
Reply #5 - Jan 30^th, 2015 at 2:33pm

BatteriesNotIncluded wrote on Jan 30^th, 2015 at 2:30pm:

Ex Dame Pansi wrote on Jan 30^th, 2015 at 2:22pm:

It doesn't, otherwise houses would cost.....

lot's

you work it out.....how much was the first house sold for? Say it was built in 1800 for argument sake.

Someone can work it out.....thanks in advance.

I too will wait Cheesy

"The rule of 72

"For a simple way to work out how long it has taken a property or an area to double in value, divide 72 by the annual growth rate. If you want to know how many times it has doubled over a particular time frame replace the annual rate by the average annual rate over the same time period.

"Example

"If you think a property will grow 10% per annum, just divide 72 by 10% and that tells you that it'll take 7.2 years to double."

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BatteriesNotIncluded

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people died for this!

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Re: If the price of houses doubles every seven years..
Reply #6 - Jan 30^th, 2015 at 2:57pm

greggerypeccary wrote on Jan 30^th, 2015 at 2:33pm:

BatteriesNotIncluded wrote on Jan 30^th, 2015 at 2:30pm:

Ex Dame Pansi wrote on Jan 30^th, 2015 at 2:22pm:

It doesn't, otherwise houses would cost.....

lot's

you work it out.....how much was the first house sold for? Say it was built in 1800 for argument sake.

Someone can work it out.....thanks in advance.

I too will wait Cheesy

"The rule of 72

"For a simple way to work out how long it has taken a property or an area to double in value, divide 72 by the annual growth rate. If you want to know how many times it has doubled over a particular time frame replace the annual rate by the average annual rate over the same time period.

"Example

"If you think a property will grow 10% per annum, just divide 72 by 10% and that tells you that it'll take 7.2 years to double."

..now that throws the cat amongst the pigeons Grin

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*Sure....they're anti competitive as any subsidised job is. It wouldn't be there without the tax payer. Very damned difficult for a brainwashed collectivist to understand that I know.... (swaggy) *

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perceptions_now

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Re: If the price of houses doubles every seven years..
Reply #7 - Jan 30^th, 2015 at 3:51pm

greggerypeccary wrote on Jan 30^th, 2015 at 2:33pm:

BatteriesNotIncluded wrote on Jan 30^th, 2015 at 2:30pm:

Ex Dame Pansi wrote on Jan 30^th, 2015 at 2:22pm:

It doesn't, otherwise houses would cost.....

lot's

you work it out.....how much was the first house sold for? Say it was built in 1800 for argument sake.

Someone can work it out.....thanks in advance.

I too will wait Cheesy

"The rule of 72

"For a simple way to work out how long it has taken a property or an area to double in value, divide 72 by the annual growth rate. If you want to know how many times it has doubled over a particular time frame replace the annual rate by the average annual rate over the same time period.

"Example

"If you think a property will grow 10% per annum, just divide 72 by 10% and that tells you that it'll take 7.2 years to double."

Personally, I like 70!

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greggerypeccary

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Re: If the price of houses doubles every seven years..
Reply #8 - Jan 30^th, 2015 at 3:55pm

perceptions_now wrote on Jan 30^th, 2015 at 3:51pm:

greggerypeccary wrote on Jan 30^th, 2015 at 2:33pm:

BatteriesNotIncluded wrote on Jan 30^th, 2015 at 2:30pm:

Ex Dame Pansi wrote on Jan 30^th, 2015 at 2:22pm:

It doesn't, otherwise houses would cost.....

lot's

you work it out.....how much was the first house sold for? Say it was built in 1800 for argument sake.

Someone can work it out.....thanks in advance.

I too will wait Cheesy

"The rule of 72

"For a simple way to work out how long it has taken a property or an area to double in value, divide 72 by the annual growth rate. If you want to know how many times it has doubled over a particular time frame replace the annual rate by the average annual rate over the same time period.

"Example

"If you think a property will grow 10% per annum, just divide 72 by 10% and that tells you that it'll take 7.2 years to double."

Personally, I like 70!

I'm a 69 fan.

(The Rule of 69.3)

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John Smith Gold Member Online Australian Politics Posts: 77090 Gender:	Re: If the price of houses doubles every seven years.. Reply #9 - Jan 30^th, 2015 at 7:12pm 7 yrs is a long term average, not a rule
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perceptions_now

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Re: If the price of houses doubles every seven years..
Reply #10 - Jan 30^th, 2015 at 7:59pm

John Smith wrote on Jan 30^th, 2015 at 7:12pm:

7 yrs is a long term average, not a rule

JS,
I think you may find that the OZ experience is not dissimilar to the US example, on the following chart.

Let's leave aside the recent US dip in Prices for a moment & look at the other 2 basic periods -
1) 1990-1945: not really much growth, certainly nowhere near 10% P/A.
2) 1945-2006: the market slowly started to lift after WW2 & really started to motor along around 1970, perhaps around 8-9%.

So, doubling every 7 years may be a little high, but not that far off the mark, for the US & the OZ market may have been a little better?

But, that is for a "relatively short" 36 years or so.

Anyway, my point is that the OZ market of the last 40 or so years, won't be repeated over the next 40 years! In fact, we will most likely follow the US, Japan & Europe trends, with a Decline in Housing value, which I suspect will start about now.

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greggerypeccary Gold Member Offline Australian Politics Posts: 143967 Gender:	Re: If the price of houses doubles every seven years.. Reply #11 - Jan 30^th, 2015 at 8:01pm perceptions_now wrote on Jan 30^th, 2015 at 7:59pm: So, doubling every 7 years may be a little high, but not that far off the mark ... 7 to 10 years is the generally accepted period.
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John Smith

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Re: If the price of houses doubles every seven years..
Reply #12 - Jan 30^th, 2015 at 8:47pm

perceptions_now wrote on Jan 30^th, 2015 at 7:59pm:

Anyway, my point is that the OZ market of the last 40 or so years, won't be repeated over the next 40 years! In fact, we will most likely follow the US, Japan & Europe trends, with a Decline in Housing value, which I suspect will start about now.

disagree ... I don't see the trend changing, not unless there is some major govt. intervention. Sure, we will have adjustment periods, we always have had them, but down for the next 40 yrs? not going to happen.

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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

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Bobby. Gold Member Online Australian Politics Posts: 111600 Melbourne Gender:	Re: If the price of houses doubles every seven years.. Reply #13 - Jan 30^th, 2015 at 9:45pm My place didn't double in the last 7 years - it went up about 10%.
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Wolseley Gold Member Offline Australian Politics Posts: 1453 Sydney Gender:	Re: If the price of houses doubles every seven years.. Reply #14 - Jan 30^th, 2015 at 9:54pm There's an element of guesswork here, but I would say that my property went up in value by around 30% in 7 years but would have taken about 12 years to double in value.
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