I want my 1975 bux back.
But it's a hypothetical. Even if a house had never been purchased, you still wouldn't have your 1975 dollars back.
Don't forget they were paying down the 1975 value of the house. The amount of their mortgage didn't increase with the cost of living, so their $200/month payment--which in 2005 terms would equal $713--is still far less than it would cost to rent a house of comparable size.
If they had saved that $200/month, starting in 1975, they would have $98,500 today (assuming a standard savings account at 2% interest). Less than the $108K they've made on the house.
and of course they couldn't have saved that 200.... or not all of it because you have to live somewhere...
beth, i do so love your spicy brains!
OK, I'm going 2400 x 30 and making 720 K in 1975 bux. Let us give a slope to the numbers behind inflation that comes out and $135 K.
Wait, I'll stop there. Maybe you don't like my numbers.
Gus, I don't understand your numbers. Where's the 2400 coming from?
edit: 2400 times 30 equals 72K, not 720K.
edited again: Just so you know where I'm getting my conversion figures from. The CPI has $1 in 1975 equal to $3.57 today. If they had 72K in 1975, it's equal to having ~$257K in 2005. But they wouldn't, because the rate of return on a standard savings account wasn't great enough. And you've got that slope of inflation to account for.
Gawd. 12 x 200 x 32 = 72K
Yes.
I am down with this. I sloped the numbers as I went along.
Pick a number above 72, Maria of my heart. I shall use it to do battle.
Oh my dear Gus. You were meant for an earlier time.
What was your rate of slope? I'd like to know how you extrapolated the numbers.
(I'm genuinely curious, and not trying to be argumentative in the least.)
What was your rate of slope? I'd like to know how you extrapolated the numbers.(I'm genuinely curious, and not trying to be argumentative in the least.)
4.2% of GNP per annum
This all goes on in my head. It is fun in here, in my head.
Just in case anybody was wondering, I would do Rosario Dawson , Lauren Graham and Alexis Bledel all at once.
As a human being, I am a poor example.
Is Gus gone?
If so, here's my chance....
We bought our NC house having given the bank $300. We pay about what rent would be, so except for that $300, it appears to cost us what renting would.
We paid $1000 down for our house in CO and sold it for 25K more than we owed after 2 years. Since the rent/mortgage deal was about the same there, I've always looked at that as the best $1000 investment ever.
DH bought a home in AZ, lived there a year, rented it for 6, sold it for 40K more than we owed. Of course, there were way more variables on that one.
I don't know that I would call this a local phenomenen, but you do have to buy a home in the right place.
