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Parts of Palo Alto were very blue collar post WWII. I knew one nonagenarian who bought his house new in 1949 for $10k, and it sold, unimproved, for $2.2m on his
by drfuchs 11y ago
Parts of Palo Alto were very blue collar post WWII. I knew one nonagenarian who bought his house new in 1949 for $10k, and it sold, unimproved, for $2.2m on his death over a year ago. Also a centenarian still living in her original 1950 $10k house that Zillow now estimates at $2.3m. So, there's 220x gains. Clearly, all the value is in the land. Property tax in 2013 was about $1k in both cases; both have new neighbors in newly-built $4m houses on same-size lots paying $40k tax.
- DrScump 11y ago<So, there's 220x gains> In nominal dollars. <Property tax in 2013 was about $1k in both cases> I really doubt that. I just checked a friend's house who has lived in PA since 1952, and they are paying $3200. Anybody can look up what actual property taxes are paid here: https://payments.sccgov.org/propertytax/Secured https://payments.sccgov.org/propertytax/Secured
- gberger 11y agoAccording to [1], $10k in 1950 corresponds to about $100k in 2015. So the gain is 23x, which is still insane. [1] http://www.usinflationcalculator.com/ http://www.usinflationcalculator.com/
- DrScump 11y agoI was using the official Federal government site estimator as I indicated above: http://data.bls.gov/cgi-bin/cpicalc.pl http://data.bls.gov/cgi-bin/cpicalc.pl
- deleted 11y ago[deleted]
- drfuchs 11y agoExactly the site I used. Exactly $1121.80 for 2013 (in both cases; same development, same lot size, so must have been same price).