"I'm Stressed About Rising Oil Prices. Wont This Cause Property Prices to Fall ?"

The answer is going to surprise you.

In the 1973 Oil Shock, oil prices went from $4 to $12 in 18 months

Inflation in Australia hit 9% in 1973, then 15% in 1974

During this period Australian mortgage rates went from around 7.5% to 9.5%

Given this information, what do you think property prices did?

 

I bet its not what you thought.

I certainly found it surprising.

Sydney house price growth:

Oil Price

Sydney % Growth

Inflation

Sydney Real % Growth

1973

4.7

14.9%

9%

5.9%

1974

12.2

37.7%

15%

22.7%

1975

13.1

4.4%

14%

-9.6%

In 1974 Sydney house prices rose a whopping 37.7%, after rising 15% the year prior.

And yes Melbourne was about the same.

Now there are many other unique factors in every crisis, and there are many other nuances, but if you are sitting waiting for better times to buy property than now, you may be doing the exact wrong thing.

Stay tuned for the next newsletter later this week about what house prices did in the second oil shock in the late 1970s as well as the full data over the entire period.

If you are looking to buy or refinance, dont miss the rising inflation boat. Markets move during uncertainty, not after it.

Do you have a plan how to come out financially better on the other side of this crisis? Lets build you a strategy now.

Look forward to your email at [email protected] or call me 0403397060

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Upcoming events

Texas Star Performance Campdraft - Onsite Sponsor

April 1-4 Bombala Showgrounds

TSPH Campdraft

Thunderbolt Lending are proud sponsors of TSPH.

We will be there in our mobile office at the event (and having a few runs lol) chatting all things finance and lending. Come and say hi and we will buy you a coffee!

Why do we like to sponsor TSPH ?

We love to give people the chance to start their journey, whether thats in horsemanship or in their financial future. We just love how TSPH has given so much support for people starting out in Campdrafting. We also love to support grass roots regional and rural communities.

All of us are beginners at some point. In fact, having a beginners mindset all through life has served me well. Never be afraid to be a beginner in whatever pursuit you are chasing in life.

About TSPH — Texas Star Performance Horses

Texas Star Performance Horses (TSPH) is a family-owned business breeding elite campdraft and cutting horses since 2008. Amanda Nicholson, Neil Faint, and their dedicated team offer personalised clinics, lessons, and events. They support riders at all levels, fostering grassroots growth and securing

www.texasstarperformancehorses.com.au/about-tsph

Come and Chat in our mobile office

Upcoming Events

Berridale Art Trail

We are hosting the Berridale Art Trail in our Berridale Office over easter Friday, Saturday and Sunday

Come and see the following artists:

  • Pauline Syron-Coxon

  • EMHART

  • Gil Wilson

  • Gonk Art

We will also be raising money for Cherry Tree/Brain Foundation/Michelle O’Neill Foundation through an online raffle of local goods . Stay tuned for more details.

Local or Visiting? Drop in, its free!

Get Your Financial Plan in Place

Want to discuss your financial needs? Lets catch up in person or via Zoom, click here:

That’s it for this week.

Keep showing up and keep cheering each other on — life is better when we support each other.

Reggie and the Thunderbolt Team