Inlfation, and the Myth of REALESTATE value
http://www.bankofcanada.ca/en/rates/inflation_calc.html
A "basket" of goods and
services that cost: $100,000 in 1974
...would cost: $373,431 in 2002
My parents bought their Scarborough home for $100K in 1974
and sold the home (after adding a pool, finishing the basement, replacing the roof, windows, and adding a Sauna/shower and bedroom above) in 2002 for $350K
Optically, they lost $23K... Add on the pool, addition to the house and its more like $50K..
This doesn't even take into account the Interest they were paying on their mortgage, which at times was 9%....
A "basket" of goods and
services that cost: $100,000 in 1974
...would cost: $373,431 in 2002
My parents bought their Scarborough home for $100K in 1974
and sold the home (after adding a pool, finishing the basement, replacing the roof, windows, and adding a Sauna/shower and bedroom above) in 2002 for $350K
Optically, they lost $23K... Add on the pool, addition to the house and its more like $50K..
This doesn't even take into account the Interest they were paying on their mortgage, which at times was 9%....