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skills@eurocarsplus
Samba Peckerhead
Joined: January 01, 2007
Posts: 16879
Location: sticksville, ct.
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 Posted: Thu Jan 05, 2023 12:42 pm Post subject: Re: Cost of Living 50 Years Ago |
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| NJ John wrote: |
My father worked for PSE&G utilities, late 60’s to early 70’s. It snowed and he worked a bunch of overtime and took home a little less than $120. He said, “man if I could just make this every week”.
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as a kid I remember my mother telling me that our old apartment was 75/mo (it was in a pretty bad part of town)
and when we moved to a better bad part of town it was 200/mo with heat and hot water included
this was in the mid 80's
but looking back and even talking to my grandmother it was all relative.. my grandfather worked 3 jobs so granny could stay home with the kids, and the minute they were in school she joined the workforce
my mother (parents divorced) worked 2 jobs while juggling my brother and I and that went on until she got just enough education to land a better job at the hospital she worked at
the thing to consider now is everything went up so high so fast wages aren't keeping up
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| gprudenciop wrote: |
my reason for switching to subaru is my german car was turning chinese so i said fuck it and went japanese....... |
| Jake Raby wrote: |
| Thanks for the correction. I used to be a nice guy, then I ruined it by exposing myself to the public. |
| Brian wrote: |
| Also the fact that people are agreeing with Skills, it's a turn of events for samba history |
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Mike Fisher
Samba Member
Joined: January 30, 2006
Posts: 17970
Location: Eugene, OR
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| Posted: Thu Jan 05, 2023 4:50 pm Post subject: Re: Cost of Living 50 Years Ago |
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My rent was $35/mo for a little mother-in-law apartment in Redding, CA in 68-69.
I could barely afford it working part time selling shoes at Montgomery Wards!
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Cusser
Samba Member
Joined: October 02, 2006
Posts: 31379
Location: Hot Arizona
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| Posted: Thu Jan 05, 2023 6:33 pm Post subject: Re: Cost of Living 50 Years Ago |
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44 years ago I bought a brand-new 3-bedroom 1200SF townhouse in Tempe AZ for $38K (I had the self-cleaning oven upgrade). Due to my salary, the first mortgage company wanted 40% down; went through another and only had to have 10% down.
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1970 VW (owned since 1972) and 1971 VW Convertible (owned since 1976), second owner of each. The '71 now has the 1835 engine, swapped from the '70. Second owner of each. 1988 Mazda B2200 truck, 1998 Frontier, 2014 Yukon, 2004 Frontier King Cab. All manual transmission except for the Yukon. http://www.thesamba.com/vw/forum/album_page.php?pic_id=335294 http://www.thesamba.com/vw/forum/album_page.php?pic_id=335297 |
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EverettB 
Administrator
Joined: April 11, 2000
Posts: 69823
Location: Phoenix Metro
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| Posted: Thu Jan 05, 2023 10:57 pm Post subject: Re: Cost of Living 50 Years Ago |
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| Cusser wrote: |
| 44 years ago I bought a brand-new 3-bedroom 1200SF townhouse in Tempe AZ for $38K (I had the self-cleaning oven upgrade). Due to my salary, the first mortgage company wanted 40% down; went through another and only had to have 10% down. |
44 years ago is 1979? I'm curious, what was your salary at the time?
I'm wondering why they wanted 40% down as I'm guessing $38K was pretty cheap for your income level.
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iowegian
Samba Curmudgeon
Joined: February 16, 2005
Posts: 9829
Location: Somewhere between Dubuque and Keokuk
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oprn
Samba Member
Joined: November 13, 2016
Posts: 12730
Location: Western Canada
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| Posted: Fri Jan 06, 2023 5:28 am Post subject: Re: Cost of Living 50 Years Ago |
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The goal of the banks is to have every property under a new mortgage. They hate people that pay off their house and then just live in it. "When are you going to up grade?" they will ask you and show you a nice interest rate. Every time someone "upgrades" it benefits then two fold. You have a new mortgage and so does the home you left.
Now to understand this better, consider that on a new mortgage the interest is paid first as nearly all of your monthly payment goes to interest and the principle is paid at the end of the mortgage term. It is in their best interest to have mortgages as "fresh" as they can! Once you get to the 10 year mark on your mortgage they get a bit antsy because the interest to principle ratio is not so much in their favor.
Credit cards aren't the only interest scams out there!
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Cusser
Samba Member
Joined: October 02, 2006
Posts: 31379
Location: Hot Arizona
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| Posted: Fri Jan 06, 2023 7:18 am Post subject: Re: Cost of Living 50 Years Ago |
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| EverettB wrote: |
| Cusser wrote: |
| 44 years ago I bought a brand-new 3-bedroom 1200SF townhouse in Tempe AZ for $38K (I had the self-cleaning oven upgrade). Due to my salary, the first mortgage company wanted 40% down; went through another and only had to have 10% down. |
44 years ago is 1979? I'm curious, what was your salary at the time?
I'm wondering why they wanted 40% down as I'm guessing $38K was pretty cheap for your income level. |
My salary was $14K at the time, had increased to that from $13K just after I'd been told that I'd need 40% down by the first mortgage company - the one the builder steered folks to, and builder likely got a nice kickback.
I was an R&D chemist at Armour-Dial in Scottsdale (since 1975) so 3 years at same employer at that time; and I signed for the purchase in late 1978 but didn't move in until March 1979 due to extended build time (told because of a drywall shortage).
_________________
1970 VW (owned since 1972) and 1971 VW Convertible (owned since 1976), second owner of each. The '71 now has the 1835 engine, swapped from the '70. Second owner of each. 1988 Mazda B2200 truck, 1998 Frontier, 2014 Yukon, 2004 Frontier King Cab. All manual transmission except for the Yukon. http://www.thesamba.com/vw/forum/album_page.php?pic_id=335294 http://www.thesamba.com/vw/forum/album_page.php?pic_id=335297 |
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vwinnovator
Samba Member
Joined: July 11, 2005
Posts: 1555
Location: Still doing it in the back of your VW
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| Posted: Fri Jan 06, 2023 8:19 am Post subject: Re: Cost of Living 50 Years Ago |
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| oprn wrote: |
The goal of the banks is to have every property under a new mortgage. They hate people that pay off their house and then just live in it. "When are you going to up grade?" they will ask you and show you a nice interest rate. Every time someone "upgrades" it benefits then two fold. You have a new mortgage and so does the home you left.
Now to understand this better, consider that on a new mortgage the interest is paid first as nearly all of your monthly payment goes to interest and the principle is paid at the end of the mortgage term. It is in their best interest to have mortgages as "fresh" as they can! Once you get to the 10 year mark on your mortgage they get a bit antsy because the interest to principle ratio is not so much in their favor.
Credit cards aren't the only interest scams out there! |
Banks are in the business to "sell you money" for more than money is worth.
They actually "create money" by issuing debt to the unsuspecting who "want it now" and don't understand the effect of that debt.
consumers have been brainwashed into focusing on "what's the monthly payment".
Bank use ratios that has been developed into maximizing putting a consumer into debt while minimizing the banks risk should a default occur.
Ever wonder how/why and bank can/will offer loans at 125% of a home value??
"lets roll all you car and credit card debt into the loan and we'll keep you payment to ..." "let make it a 30yr loan instead of a 20yr and it will SAVE you xxx$'s a month  "
The only thing that continues to increase the cost of living is the consumers WANT to have it NOW.
Why is it that house values don't decline over there useful life same as vehicles and other products...???
floors wear, doors and windows wear, roofs wear, appliances wear, plumbing wears, ductwork fills, etc....
Houses are perpetual maintenance needed items. considering the cost of replacing/remodeling...why don't houses loose their value over their life span??
vehicles wear as well, but at a much lower cost to maintain and refurbish if need be, yet they loose more than 1/2 their value in here first 5yrs of consumer use...
But, consumers want things NOW...so look at what banks do for vehicle loans and keeping that monthly payment low...7yr, 10yr... so you can buy that nice new truck at 20% over MSRP !!!
consumers create their owe ever increasing costs of living, so they can only complain about themselves for doing so.. |
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Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
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| Posted: Fri Jan 06, 2023 8:28 am Post subject: Re: Cost of Living 50 Years Ago |
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"Consumers have been brainwashed into focusing on "what's the monthly payment"."
Exactly. That's why the typical 20 year mortgage 50 years ago is 30 years now and the typical car payment 50 years ago was 24 months and now is 60+ months. With today's cost of vehicles, can a mortgage on such be far off? |
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EverettB
Administrator
Joined: April 11, 2000
Posts: 69823
Location: Phoenix Metro
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| Posted: Fri Jan 06, 2023 8:56 am Post subject: Re: Cost of Living 50 Years Ago |
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| Cusser wrote: |
| EverettB wrote: |
| Cusser wrote: |
| 44 years ago I bought a brand-new 3-bedroom 1200SF townhouse in Tempe AZ for $38K (I had the self-cleaning oven upgrade). Due to my salary, the first mortgage company wanted 40% down; went through another and only had to have 10% down. |
44 years ago is 1979? I'm curious, what was your salary at the time?
I'm wondering why they wanted 40% down as I'm guessing $38K was pretty cheap for your income level. |
My salary was $14K at the time, had increased to that from $13K just after I'd been told that I'd need 40% down by the first mortgage company - the one the builder steered folks to, and builder likely got a nice kickback.
I was an R&D chemist at Armour-Dial in Scottsdale (since 1975) so 3 years at same employer at that time; and I signed for the purchase in late 1978 but didn't move in until March 1979 due to extended build time (told because of a drywall shortage). |
Ok, got it. I was thinking you made a lot more at the time but if you had just started 3 years earlier, that makes sense.
$13K -> $14K = a 10% raise though... Nice!
_________________
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Everett Barnes - [email protected] | My wanted ads
"Water is the only drink for a wise man" | "Communication prevents complaints"
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vwracerdave
Samba Member
Joined: November 11, 2004
Posts: 15308
Location: Deep in the 405
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| Posted: Fri Jan 06, 2023 9:01 am Post subject: Re: Cost of Living 50 Years Ago |
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the cost of living isn't any higher today than it was 50 years ago. We have all gotten more spoiled and demand more expensive stuff.
The most you should spend on a house it 2 years of your income.
The most you should spend on a car is 5 months of your income.
Today we spend double on houses and cars that we should spend. We also have every member of the family with a $500- $1000 cell phone in their pocket. NOBODY had a cell phone 50 years ago. 50 years ago we didn't have cable and internet.
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OB Bus
Samba Member
Joined: February 09, 2003
Posts: 2541
Location: Ocean Beach in Beautiful BLUE California
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| Posted: Fri Jan 06, 2023 9:10 am Post subject: Re: Cost of Living 50 Years Ago |
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In 1973 I was married for the first time. Wife and I were full time students at San Diego State and both worked part time on campus. Our folks paid for fees and books (about $125/semester each) but we paid for everything else.
My parents were married in 1938, both full time students at Oregon State and worked part time. My Dad's folks gave them $16/month to help out.
One day my father and I did a side-by-side comparison of the two situations. What we found that income and expenses were surprising proportional between the two eras.
The differences:
We had a one bedroom apartment to ourselves. My folks rented one room in a house with 3 other couples. The four couples shared a one bath and a kitchen. My folks had one shelf in the fridge.
We owned all our own second hand furniture. My folks owned nothing.
We had a car - a '68 Datsun wagon. The folks had 2 bicycles.
We camped frequently and took a couple of driving/camping trips each year. The first "vacation" my parents took as a couple was when he reported for active duty with the Army.
There were other comparisons that have been lost in the fog of my aging brain.
Short story long - our standard of living was far above theirs. A difference in time.
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TDCTDI
Samba Advocatus Diaboli
Joined: August 31, 2013
Posts: 12856
Location: North Carolina
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| Posted: Fri Jan 06, 2023 9:42 am Post subject: Re: Cost of Living 50 Years Ago |
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| vwinnovator wrote: |
Why is it that house values don't decline over their useful life same as vehicles and other products...???
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TAXES!
So the government can keep milking the masses to grow even larger.
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skills@eurocarsplus
Samba Peckerhead
Joined: January 01, 2007
Posts: 16879
Location: sticksville, ct.
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| Posted: Fri Jan 06, 2023 10:06 am Post subject: Re: Cost of Living 50 Years Ago |
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| vwracerdave wrote: |
The most you should spend on a house it 2 years of your income.
The most you should spend on a car is 5 months of your income.
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"should" and reality are 2 different things. there are virtually no 80-100k houses out there, and if they do exist, they are either uninhabitable or in very undesirable locations
you can still pull off the car thing. not so much with the house
| vwinnovator wrote: |
Why is it that house values don't decline over their useful life same as vehicles and other products...???
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| TDCTDI wrote: |
TAXES!
So the government can keep milking the masses to grow even larger. |
there is an old saying that great grandpa use to say around here: "they stopped making land a long time ago, but they make more money every day"
total supply and demand thing with housing.
honestly, depending on the situation I think today you are better off buying an existing home than trying to build. Much cheaper to buy one already done (usually)
we built in '08. to replace this house today would be a little more than double what we spent
we got "lucky" with our mortgage. we went from a 30yr to a 20yr then a 20yr bi-weekly which all said and done made the 20 into 18 because of the bi-weekly payments. We have about 3 years left on it, which means we'll have about 25 years left of our working years debt free to pile cash for retirement (which we have been doing all along)
I'm almost tempted to stroke a check and get rid of the last 3 or so years, but it doesn't make sense at this point
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| gprudenciop wrote: |
my reason for switching to subaru is my german car was turning chinese so i said fuck it and went japanese....... |
| Jake Raby wrote: |
| Thanks for the correction. I used to be a nice guy, then I ruined it by exposing myself to the public. |
| Brian wrote: |
| Also the fact that people are agreeing with Skills, it's a turn of events for samba history |
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Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
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| Posted: Fri Jan 06, 2023 10:07 am Post subject: Re: Cost of Living 50 Years Ago |
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| vwracerdave wrote: |
the cost of living isn't any higher today than it was 50 years ago. We have all gotten more spoiled and demand more expensive stuff.
The most you should spend on a house it 2 years of your income.
The most you should spend on a car is 5 months of your income.
Today we spend double on houses and cars that we should spend. We also have every member of the family with a $500- $1000 cell phone in their pocket. NOBODY had a cell phone 50 years ago. 50 years ago we didn't have cable and internet. |
So then, the cost of living is higher for those people who can't live within their means.
BTW, I have a flip phone and I don't even want that. |
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iowegian
Samba Curmudgeon
Joined: February 16, 2005
Posts: 9829
Location: Somewhere between Dubuque and Keokuk
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| Posted: Fri Jan 06, 2023 10:16 am Post subject: Re: Cost of Living 50 Years Ago |
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| Bonesberg55 wrote: |
.........I have a flip phone and I don't even want that. |
I sure miss my bag phone.  |
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NJ John
Samba Member
Joined: September 21, 2007
Posts: 2223
Location: HdG, MD & NJ
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| Posted: Fri Jan 06, 2023 10:42 am Post subject: Re: Cost of Living 50 Years Ago |
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People often buy a house based on their overtime based income. Then their company cuts back and they lose the overtime.
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Emily's Owner
Samba Member
Joined: January 18, 2004
Posts: 978
Location: Canby, Oregon
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| Posted: Fri Jan 06, 2023 11:41 am Post subject: Re: Cost of Living 50 Years Ago |
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| iowegian wrote: |
| Bonesberg55 wrote: |
.........I have a flip phone and I don't even want that. |
I sure miss my bag phone. |
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Xargaret
ITMC - OG Den Mother
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finster
Samba Member
Joined: May 26, 2012
Posts: 7951
Location: north o' the border
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| Posted: Fri Jan 06, 2023 12:10 pm Post subject: Re: Cost of Living 50 Years Ago |
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| NJ John wrote: |
| People often buy a house based on their overtime based income. Then their company cuts back and they lose the overtime. |
when I bought my first house in 1986 my boss said if I had any trouble getting a mortgage he could supply paperwork indicating my salary was higher than it was. I told him that imaginary pay was not the solution.
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Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
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| Posted: Fri Jan 06, 2023 12:24 pm Post subject: Re: Cost of Living 50 Years Ago |
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"Why is it that house values don't decline over their useful life same as vehicles and other products...???"
Because they don't rust out! |
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