Baalzamon said:
The interest rate on your father in law's house was also probably...around 10.5%. So a 30 year loan (assuming 20% down payment) would have cost total of $255,000 (including the down payment). The $270k value now will be a total cost of $448,000 over a 30 year loan (at 4.5% interest). Per government data sites, the average wage in 1990 was $21,000 compared to $48,500 in 2016 (most recent available on data set I'm looking at on social security site). So in 1990, the house represented 12.14 years of wages, whereas in 2016 it represents 9.24 years of income. Seems to me like the house has actually gotten cheaper. |
Point of clarification: the NEW house in 1991 was what you calculated to have a total cost of $255,000. The TWENTY-SEVEN year old house in 2018 was what you calculated to be cheaper relative to wages compared to the new house back then. If SpokenTruth is right about an equivalent new house costing $400k, then that is indeed more expensive than the 1991 house was relative to wages. By, you know, a lot.
Tag (courtesy of fkusumot): "Please feel free -- nay, I encourage you -- to offer rebuttal."
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My advice to fanboys: Brag about stuff that's true, not about stuff that's false. Predict stuff that's likely, not stuff that's unlikely. You will be happier, and we will be happier.
"Everyone is entitled to his own opinion, but not his own facts." - Sen. Pat Moynihan
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The old smileys: ; - ) : - ) : - ( : - P : - D : - # ( c ) ( k ) ( y ) If anyone knows the shortcut for , let me know!
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