1850sqft house built in 1951. Inside is all old and dated. Just a new coat of paint. Decently maintained.
current owner bought in 1969. for $27000 (242,000 adjusted for inflation)
sold for $1,450,000.
Wish I could buy a house for $242,000 equivalent.
sucks not to be a boomer
boomers don't know how good they have it. On my street in greater los angeles, house just sold for a $1.2 million profit after adjusting for inflation.
byu/pman6 inRealEstate
Posted by pman6
12 Comments
Taking inflation into account, what do you think that same house would sell for in another 57 years?
You can, just not in LA.
It gets better.
They were paying property taxes on a fraction of the market value for decades.
And if they buy another home – even a more expensive home – anywhere in California, their property taxes are still discounted because the assessed value transfers with the home (with some caveats)
Except boomers are 62yrs old+ , would you want a large profit and almost be dead or stay in your 20’s and 30’s and figure it out
That’s a 7% interest rate over 57 years.
Your issue isn’t boomers your issue is you didn’t make a good investment 57 years ago.
That’s a little over 7% return of initial investment over 57 years. Do you really call that a good investment? Is that also considering all the improvements in house over those years? It’s okay, but not great.
Granted, that house was more affordable to the average person in 1969 compared to now. That’s the real problem.
Population density
$27,000 invested in the S&P in 1969 would be worth 8.25 million today. That house was a terrible investment for that guy.
It probably isn’t fair to compare generations wealth today, it is better to compare their wealth when they were the same age. Data shows millennials are wealthier then boomers when you compare their wealth at the same age (adjusted for inflation). https://www.wsj.com/personal-finance/boomers-vs-millennials-whos-had-it-harder-e3dca54d
Good k
Troll
Dad’s house. Pacific Palisades. $40k in 1960. $2M in 2022.
this is not luck or chance. this is smart investing. nothing overnight or windfall. long-term strategy