I’m always intrigued, bemused and at times frustrated when I see ‘statistics’ so badly mauled in the Press.
Example. If you had $100,000 and got about 3% interest per year, compounded, your account would have a balance of around $116,000 after 5 years. Im assuming no tax, just to be clear.
Congratulations though, because your $100,000 has been eroded even faster by inflation.
When online and print articles proclaim that a 14.2% rise in the Median house price in Brisbane is a winner what on Earth are they banging on about?
14.2% compound over 5 years is a LOSS!
And the median is across all of Brisbane and can be so easily skewed by the odd high value sale. See previous parts of my blog for more detail on the ‘nil value of misquoted medians’.
Here on the Gold Coast, many Apartments, especially in the ‘basket case’ that is Southport, have dropped more than 20% in the last 12 months!
For the entire Gold Coast, sales volumes of Apartments fell through the floor, dropping 10% in the 3 months to 31 December 2015. Just watch 2016! And see for yourself how poorly that sector will perform when March quarter figures are released. Year on year fall will be closer to 50%.