| Author |
Message |
NJ John
Samba Member
Joined: September 21, 2007
Posts: 2222
Location: HdG, MD & NJ
|
 Posted: Fri Jan 06, 2023 12:28 pm Post subject: Re: Cost of Living 50 Years Ago |
 |
|
Property value.
_________________
1973 standard, yellow, lowered, 3” narrowed front, 1600 blo-thru turbo w/single dell 15.4@86, so far
11.41 et buggy. Long gone
Let’s go O’s! Let’s go O’s!
https://www.youtube.com/@AirSpooledGarage |
|
| Back to top |
|
 |
iowegian 
Samba Curmudgeon
Joined: February 16, 2005
Posts: 9829
Location: Somewhere between Dubuque and Keokuk
|
| Posted: Fri Jan 06, 2023 2:29 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| Bonesberg55 wrote: |
"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! |
Sez who?
|
|
| Back to top |
|
|
56Cabrio
Samba Member
Joined: May 22, 2008
Posts: 1899
Location: San Fernando Valley, CA
|
| Posted: Fri Jan 06, 2023 2:40 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| 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. |
Today's prices are 12.37 times as high as average prices since 1950
https://www.in2013dollars.com/us/inflation/1950?amount=1
_________________
F#CK CANCER
Make a donation
1956 Rag Top owned since 1988
1956 Convertible owned since 2000
1963 Hard Top
RIP Dad 4/20/1951 - 2/4/2023 |
|
| Back to top |
|
|
Glenn
Mr. 010
Joined: December 25, 2001
Posts: 76935
Location: Sneaking up behind you
|
| Posted: Fri Jan 06, 2023 2:47 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| 56Cabrio wrote: |
| 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. |
Today's prices are 12.37 times as high as average prices since 1950
https://www.in2013dollars.com/us/inflation/1950?amount=1 |
A 1974 Beetle which originally sold for $2300 would sell cost $14,000 today. While you can't buy a car for $14,000, my son bought a 2020 Subaru Impresza for under $20,000, you can compare the 2, dollar for dollar.
_________________
Glenn
74 Beetle Specs | 74 Beetle Restoration | 2180cc Engine
"You may not get what you pay for, but you always pay for what you get"
Member #1009
#BlueSquare |
|
| Back to top |
|
|
Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
|
| Posted: Fri Jan 06, 2023 3:03 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| iowegian wrote: |
| Bonesberg55 wrote: |
"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! |
Sez who?
|
It doesn't look like its rusted thru and besides its a replaceable add-on. I have a log home and I made my first gutters out of cedar. I got 20 years out of them before having them replaced with aluminum. |
|
| Back to top |
|
|
iowegian
Samba Curmudgeon
Joined: February 16, 2005
Posts: 9829
Location: Somewhere between Dubuque and Keokuk
|
| Posted: Fri Jan 06, 2023 3:27 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| Bonesberg55 wrote: |
| iowegian wrote: |
| Bonesberg55 wrote: |
"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! |
Sez who?
|
It doesn't look like its rusted thru and besides its a replaceable add-on. I have a log home and I made my first gutters out of cedar. I got 20 years out of them before having them replaced with aluminum. |
You are right. These gutters (this is really the only awful spot) are scheduled for replacement in Spring. And the steel gutters with soldered joints are original to the house which was built in 1954, so I guess a 69 year life isn't so bad after all.  |
|
| Back to top |
|
|
Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
|
| Posted: Fri Jan 06, 2023 4:22 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| BTW I'm somewhere between Des Moines and Chicago but much closer to Chicago. If you're not too far, I have someone I would recommend. |
|
| Back to top |
|
|
Cusser
Samba Member
Joined: October 02, 2006
Posts: 31373
Location: Hot Arizona
|
| Posted: Fri Jan 06, 2023 6:25 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| finster wrote: |
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.  |
Sounds illegal and unethical to me !!!
_________________
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 |
|
| Back to top |
|
|
Joe 20
Samba Member
Joined: August 27, 2005
Posts: 655
Location: Ohio
|
| Posted: Fri Jan 06, 2023 8:36 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
Little known fact. In the late 50's houses did depreciate just like cars. I saw the real estate books with the math on how to figure that depreciation.
_________________
"Someday the world is gonna be populated by nothing but Volkswagens'" Corporal Klairvoy |
|
| Back to top |
|
|
EverettB
Administrator
Joined: April 11, 2000
Posts: 69820
Location: Phoenix Metro
|
| Posted: Fri Jan 06, 2023 9:53 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| Cusser wrote: |
| finster wrote: |
| 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. |
Sounds illegal and unethical to me !!! |
Yes, that is crazy!
_________________
How to Post Photos
Everett Barnes - [email protected] | My wanted ads
"Water is the only drink for a wise man" | "Communication prevents complaints"
Stop dead photo links! Post your photos to The Samba Gallery! |
|
| Back to top |
|
|
EverettB
Administrator
Joined: April 11, 2000
Posts: 69820
Location: Phoenix Metro
|
| Posted: Fri Jan 06, 2023 9:56 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| 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. |
Agree but in recent years due to the low interest rates a much higher multiplier was possible.
I'm not saying it was a good idea but the math sort of makes sense as you could afford a higher priced home for the same monthly payment.
Of course then you can fall into the "we can fit you into this monthly payment" crap they do with new car sales.
Something to watch for too:
In my limited experience buying houses they always seemed to qualify us for 2 or even 3x what I thought was reasonable.
_________________
How to Post Photos
Everett Barnes - [email protected] | My wanted ads
"Water is the only drink for a wise man" | "Communication prevents complaints"
Stop dead photo links! Post your photos to The Samba Gallery! |
|
| Back to top |
|
|
Xevin
Samba Member
Joined: January 08, 2014
Posts: 7628
|
| Posted: Fri Jan 06, 2023 10:12 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| EverettB wrote: |
| Cusser wrote: |
| finster wrote: |
| 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. |
Sounds illegal and unethical to me !!! |
Yes, that is crazy! |
What’s even more crazy was the mortgage company inflating your abilities to purchase a house. Think mid 2000s. Did we all forget? It was a disaster worldwide. Except maybe China.
Here’s a refresher:
https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_crisis
_________________
Keep on Busin'
| 67rustavenger wrote: |
| GFY's Xevin and VW_Jimbo! |
| Clatter wrote: |
| Damn that Xevin... |
| skills@eurocarsplus wrote: |
I respect Xevin and he's a turd  |
| SGKent wrote: |
My God! Xevin and I 100% agree  |
|
|
| Back to top |
|
|
Abscate
Samba Member
Joined: October 05, 2014
Posts: 22665
Location: NYC/Upstate/ROW
|
| Posted: Sat Jan 07, 2023 3:15 am Post subject: Re: Cost of Living 50 Years Ago |
|
|
That all traced back to Wall Street selling the mortgages as securities.
Next to Hitler, Stalin, the Creator has a cozy space for the Bankers standing by
_________________
.ssS! |
|
| Back to top |
|
|
skills@eurocarsplus
Samba Peckerhead
Joined: January 01, 2007
Posts: 16878
Location: sticksville, ct.
|
| Posted: Sat Jan 07, 2023 10:23 am Post subject: Re: Cost of Living 50 Years Ago |
|
|
| EverettB wrote: |
Something to watch for too:
In my limited experience buying houses they always seemed to qualify us for 2 or even 3x what I thought was reasonable. |
ha! that happened to me with my first house. granted, I had a sizeable down payment but was still only making about 20/hr and I was approved for 230k
I laughed right at the bank lady and said to her "230k? on 20/hr? no way. 150k is still too tight!"
but back then all in taxes/insurance was around 1100/mo which was only 300 more than rent (back then you could find a half way decent apartment for about 800/mo)
the way I saw it was at least I could build some equity and it worked out just fine
_________________
| 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 |
|
|
| Back to top |
|
|
Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
|
| Posted: Sat Jan 07, 2023 10:32 am Post subject: Re: Cost of Living 50 Years Ago |
|
|
| I was self-employed for many years when we bought our current home in 1999. It just so happened that I had by far my 2 best years income-wise in 1997 & 1998. The mortgage company only used income figures from the previous 2 full years and I qualified for about 3 times the mortgage we were seeking. I never came close to the income figures of those 2 years and I'm glad that we didn't look to buying a higher priced home. I'm sure that we would have struggled at some point. |
|
| Back to top |
|
|
Iowa Mark
Samba Member
Joined: May 06, 2004
Posts: 1071
|
| Posted: Sat Jan 07, 2023 4:48 pm Post subject: Re: Cost of Living 50 Years Ago |
|
|
| Back in the early 60's I can remember my parents discussing buying a bigger house because of my sister arriving. "But, $13,000 dollars! That's more than $100.00 a month, EVERY MONTH!!!" Then in the early 80's the bank stopped by and almost begged them to settle the note early. What a difference there was between a 2.25% FHA loan compared to the 18+% that was the rate in the 80's. Of coarse the banks used to keep all their own paper instead selling it off. Lots of changes . |
|
| Back to top |
|
|
Zundfolge1432
Samba Member
Joined: June 13, 2004
Posts: 12467
|
|
| Back to top |
|
|
Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
|
| Posted: Mon Jan 09, 2023 8:04 am Post subject: Re: Cost of Living 50 Years Ago |
|
|
In the listed deaths, I see no mention of Swede Savage who I picked in an office pool to win the Indy 500. He was leading in the race until he made a pit stop for refueling and a tire change and then was involved in a horrific accident where he escaped being seriously burned but died a few weeks later from having inhaled deadly fuel vapors. He even left the accident scene sitting up on a stretcher. He was only 26. |
|
| Back to top |
|
|
Bonesberg55
Samba Member
Joined: January 18, 2012
Posts: 1270
|
| Posted: Mon Jan 09, 2023 11:14 am Post subject: Re: Cost of Living 50 Years Ago |
|
|
| I was reading where the best decade for home appreciation was in the 70s. New home median price in 1970 was about $24K and by 1980 was $64K. I would assume that existing home values also rose proportionately. Apparently the Arab oil embargo and subsequent spiraling inflation helped a lot. |
|
| Back to top |
|
|
oprn
Samba Member
Joined: November 13, 2016
Posts: 12730
Location: Western Canada
|
| Posted: Tue Jan 10, 2023 6:39 am Post subject: Re: Cost of Living 50 Years Ago |
|
|
| Bonesberg55 wrote: |
| I was reading where the best decade for home appreciation was in the 70s. New home median price in 1970 was about $24K and by 1980 was $64K. I would assume that existing home values also rose proportionately. Apparently the Arab oil embargo and subsequent spiraling inflation helped a lot. |
I think there are big regional anomalies to that. In the British Columbia lower mainland region the biggest home inflation era was right around the time that England handed control of Hong Kong back to China. There was a HUGE transfer of wealth from Hong Kong to the Vancouver area real estate market the put the price of homes through the roof. The effects of this are still being felt today further east as far as the Okanogan and has now spread to arable lands as these displaced wealthy Orientals seek long term business ventures for thier children.
I know a man personally that wanted to buy a parcel of 80 acres next to his farm when it came up for sale about 9 years ago. At that time it went for $300K which was well above market value to an Oriental intent on growing Ginseng. That venture failed and the next Oriental buyer paid $3.8 million for the same piece of land last year! No idea how he will recover his investment! Housing development?
_________________
We had the stone age, the bronze age, the industrial age and now we are in the age of mass deception and mind control for corporate profit. (The mass media age) |
|
| Back to top |
|
|
|
