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The Cost of Living: 1983 vs 2023

	1983	83-22 Adjusted for Inflation	2023
Average Home Cost	$64,039	$230,612	$920,100
Average Annual Income	$19,188	$69,098	$90,896
Median House Price (Capitals)	~$40,000*		$869,666
Median Annual Income	Trying to find		$48,381
Tax for Average Income Bracket	$4,377	$15,762	$27,300
Average Degree Debt	$0	n/a	$24,770
Average HECS Repayment	n/a	n/a	$5,453
Average Yearly Rent	$2,494	$8,981	$28,600
Money left over	$12,315	$44,347	$34,996
If 50% saved	$6,157	$22,175	$17,498
Time to save for 20% deposit	2.08 years	n/a	10.5 years
Amount to live off	$6,157	$22,175	$17,498

In 1983, an average person with an average job and free education could purchase an average home for $64,039.
After paying tax and rent, they had $12,315 left over, which meant it would take them just over 2 years to save for a 20% deposit on their home.
Fast forward to 2023, and an average person with an average job and an average degree is facing a very different picture.
The average home now costs $920,100, and after paying tax, rent, and student loan debt, they have $34,996 left over.
It would take them 10.5 years to save for a 20% deposit on their home, leaving them with $17,498 to live on.
In 40 years, the average house price has increased by 14x, while full-time salaries have only increased by 4x.
Houses used to cost around 3x your annual salary, but now they cost 10x.
To benefit from that same 3x ratio today, you would need to be making over $300,000 a year.
The median income in Australia is around $48,000, so if you're making more than that, you're making more than 50% of all Australians who work.

These figures highlight the increasing cost of living in Australia and the challenges faced by average people looking to purchase a home. It's time for us to take a closer look at our economic policies and work towards creating a more equitable society.

The Interest Rate Fallacy

	1983	2023
Average Home Cost	$64,000	$920,100
Average Annual Income	$19,188	$90,896
20% Deposit	$12,000	$184,000
Loan Term	30 years	30 years
Interest Rate	16%	5.5%
Yearly Financials	$8,399	$51,510
Total Paid	$251,000	$1,534,500
Interest Paid	$187,000	$614,400
Average Value after 30 years	$584,000	n/a
Average Value after 40 years	$920,100	n/a
Profit after 40 years	$669,000	n/a

https://www.tiktok.com/@jack_toohey/video/7240732571313638664

The Cost of Living: 1983 vs 2023

The Interest Rate Fallacy

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