Hard to imagine.

Its funny how they go up.

I bought one for $25k 7 years ago - now worth $85k, with renovations, which is a gain of only about $20k after the reno and expenses. The same house unrenovated would be worth about $60k today.

... and one last year for $65k, now worth $180k AND $50k (subdivided), which probably sets some kind of record for % of capital gain.
 
Our first house:
Land (1972) - $3K
House building costs (1974) - $20K
Sold end 1977 - $40K

Present house (brick, 4 bed 2 bath 2 car 700 sqm)
purchased 1979 - $49.5K
Present value - $550K -$600K

But you will not that it took us 3 years to pay off the land and save the deposit to build, around average for that time. Most people had to rent for 2-3 years while they saved a house deposit. You needed 33% deposit!!
Marg
 
Hi battler,

That is hard to imagine! It looks like such a nice solid place too.

I love seeing and hearing stories like this. It stills the faith! :)

Regards JO
 
I am a little puzzled by all these claims that "such and such house only cost me about 25k 30 years ago"......But isn't it all relative?

What were wages 30 years ago an what was the cost of living, cost of petrol, cars etc 30 years ago?

I recently paid to get someone to put a deck put onto one of my IPs and the bill was a tad under 5k. My old man complained saying that he put a deck on a house in the early '70s for only $250......But people seem to forget that wages were much lower then too and also other costs. in other words - ins't it all relative?

I do understand that the ratio of a purchase cost of a home compared to the average income has changed in the last decade or so, but I do think that some people forget the factors i mention above when they think of how cheap homes were way back then.



thanks


g
 
I am a little puzzled by all these claims that "such and such house only cost me about 25k 30 years ago"......But isn't it all relative?

What were wages 30 years ago an what was the cost of living, cost of petrol, cars etc 30 years ago?

I recently paid to get someone to put a deck put onto one of my IPs and the bill was a tad under 5k. My old man complained saying that he put a deck on a house in the early '70s for only $250......But people seem to forget that wages were much lower then too and also other costs. in other words - ins't it all relative?

I do understand that the ratio of a purchase cost of a home compared to the average income has changed in the last decade or so, but I do think that some people forget the factors i mention above when they think of how cheap homes were way back then.



thanks


g

HI g,

That is another point but I understand what you are getting at.. I don't think battler is forgetting this and most of us are just having a laugh at the thought of houses being this cheap for today's standards.

My opinion is that you are correct and it is all relative. I have heard the debt Versus Wages arguement and it doesn't gel with me. 50 yrs ago money was harder to come by and we would all boggle at what our parents were earning to buy their 25k houses. :)

Regards JO
 
I was earning 65$ a week at the time, and it didn't have the extension to the left side when we bought.

I posted more for the numbers showing it more than doubled 3 times over 30 years.:)
 
I understand, but is tht not what houses are "supposed to do ?

why is it funny, should it not be considerd more "the norm" ?
 
I understand, but is tht not what houses are "supposed to do ?

why is it funny, should it not be considerd more "the norm" ?

Hi Jaycee, you are correct, it was an example that it is normal, and one we had been associated with over that period of time and new for sure what the purchase price was at that time.:)
 
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I am a little puzzled by all these claims that "such and such house only cost me about 25k 30 years ago"......But isn't it all relative?

Relative to what? We were paying interest of about 8% rising to 12-13% approx, later owners quite likely paid 17% in the late eighties, but not many would have paid that % for the last 20 years. So what is relevance?
 
When *I* was a kid, meat pies cost 20c!

Its still interesting to think about how cheap things were "back then". Houses last longer than meat pies so you can actually compare the same house. I'm not sure I'd want to compare the same meat pie.

You want a real bad case of "when I was young", my daughter constantly complains we walk home from school. She says my partner (not sure why she didn't say me) must be SO old they didn't even have cars back when he went to school, which is why he doesn't mind walking home from school now.

He's 29.
 
I think it was a great post so new people like myself can really visualise what we are doing. So thanks for that! As hard as it seems right now - all will be good
 
I think it was a great post so new people like myself can really visualise what we are doing. So thanks for that! As hard as it seems right now - all will be good

Going by the numbers in the original post, it could be worth around $3m in 2039.
 
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