There’s an old saying in finance & property: “Price is what you pay, value is what you get.”
Right now, prices are rising across asset classes—stocks, crypto, precious metals, and property—but not because the economy is surging. Instead, there’s a growing unease: a sense that fiat currency is eroding, and that simply holding cash could become a losing strategy.
This isn’t new.
In Zimbabwe during the 1990s, the economy was in freefall—battered by drought, political dysfunction, and hyperinflation. Yet, their stock market soared in USD terms. Why? Because when trust in money collapses, people flee into anything of perceived value—even if it’s risky, volatile, or illiquid.
And yet, global growth is sluggish, real wages are stagnant, and productivity is flatlining.
So what’s driving this surge?
Not exuberance—fear.
Fear of money losing its meaning. Fear of inflation, of government debt, of geopolitical uncertainty. In this kind of environment, people look for shelter—not just in the housing sense, but in the asset class sense.
While equities and crypto may offer sharp returns, they also carry volatility and limited real-world utility. Gold and silver hold symbolic value—but offer no yield.
Property, on the other hand, sits uniquely at the intersection of need and investment. It provides use, shelter, scarcity, and in many cases, income.
But more importantly, it’s the foundation of intergenerational security.
In Australia, we’re seeing the widening gap between asset holders and renters. As property prices climb, many younger Australians are falling further behind—not from a lack of effort, but because wages are not keeping up with asset inflation.
And while the “Bank of Mum and Dad” has been an unofficial lender of last resort, even that system is reaching its limit. The greatest help parents can offer may no longer be a gift later in life—it’s getting their kids onto the property ladder now, before it pulls even further out of reach.
We’re not in a booming economy. We’re in a period of quietly shifting trust—where cash feels less dependable, and real assets are becoming the new safe haven.
That’s why, even amid uncertainty, we believe property remains the most compelling, tangible, and enduring store of value.
And when the value of money feels like it’s dying, the value of owning real, high-quality assets has never been clearer.
Want help identifying value in today’s market?
At 1Group, we guide clients to smart, forward-looking property decisions—whether it’s your first investment or a generational plan.
Reach out to learn how we can help you buy better.
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