#325 - The Last Time Property Did This, It took 70 Years to Recover

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The last time Australia saw a property boom like this, it ended in a 50% crash, and the recovery took 70 years.

Most Aussies think property “always goes up”, but history tells a very different story. In this episode, Lloyd breaks down the 1890s crash, why the same conditions are forming again, and what it means for your money today.

◼️ Why the 1890s property boom collapsed and wiped out 50% of values

◼️ The parallels between that crash and today’s interest rates, credit and confidence

◼️ How macro shocks (oil, AI, unemployment) can trigger a downturn

◼️ Why overpriced, non‑productive property can stagnate for decades

Timestamps:

00:00:00 - Introduction

00:01:00 - Historical Context: The Boom in Melbourne (1870-1888)

00:02:30 - The Detachment from Reality: Property Prices Skyrocket

00:04:00 - Triggers of the 1890s Crash: Capital Withdrawal and Rising Interest Rates

00:06:00 - The Collapse of Confidence and Its Consequences

00:07:30 - Comparisons to Current Market Conditions

00:09:00 - The Impact of External Factors on the Economy

00:10:30 - Lessons from the 1890 Crash: Long Recovery Period

00:12:00 - Potential Future Scenarios for the Property Market

00:13:30 - The Role of Credit and Employment in Property Markets

00:15:00 - Final Thoughts: Caution in Real Estate Investment

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DISCLAIMER

This content is for educational and informational purposes only. This is not financial, investment, or legal advice. Investing carries inherent risks including potential loss of capital. Past performance does not guarantee future results. Always conduct thorough research and consult with qualified financial advisors before making investment decisions. Individual results vary based on market conditions, personal circumstances, and investment strategy.