Funny stuff today from Adam Creighton:
If your family had doubled down on the London property market in 1938, you’d have done very well. In the 79 years since then house prices have risen 41,363 per cent. In the 649 years before that, London house prices rose only 887 per cent, meaning they went backwards once taking account of inflation.
As house prices fall in Sydney and Melbourne, anxious investors and home buyers who bought at the peak should pick up a history book. House prices may fall for a little while — Sydney’s are down 9 per cent already since last year’s peak — but they won’t fall for long. The nature of our monetary system, combined with the natural rapacity of government, almost guarantees prices will keep rising.
