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> Although that leaves it unclear how you got the high-priced house in the first place 1984, man. Prices were half or a third then what they are now. That pr
by douche 11y ago
> Although that leaves it unclear how you got the high-priced house in the first place
1984, man. Prices were half or a third then what they are now. That probably means they originally bought the house in the 70s, when things were yet cheaper.
I think back to my grandparents, that paid around 20k for a house around 1960. If I were to buy an identical house today, I'd be looking at 200k minimum, probably more like 250k, and it would be on a one acre lot, not 20.
- sokoloff 11y agoThat's equivalent to the effect of an average 4.25% inflation compounded over 55 years. The 10x headline multiple seems shocking, but when you unpack it, it's not that shocking.
- protonfish 11y agoAnd $125,000 a year salary at 4.25% for 30 years is almost $450,000 today. It wouldn't be a struggle retiring in 10 years if you made that today. A single inflation rate paints an inaccurate picture when the difference between income and living expenses increases are that dissimilar.
- samstave 11y agoMy grandparents bought their place in Saratoga .ca for 26k in 1959 and sold it for 2.5mm in 2003
- chovy 11y agomy grandparents paid $20k for their house and sold it for $1M.