We all know that the increase in the price of houses is insane, but I have just checked the current capital value of the house I bought in 1978 for $34,500. It is now listed by the Council at $540,000.
The Reserve Bank's inflation-calculator says that $34,500 is now $213,555, which is less than half $540,000, so the price of that house has rocketed far ahead of inflation. $540,000 is 2.52 times $213.555. $540,000 is 15.65 times $34,500.
The house was new, three bedrooms, in a good neighbourhood in Birkenhead, in a cul-de-sac off a cul-de-sac off a cul-de-sac so it was quiet. Lots of bush, close to schools and a supermarket. I got it on a deposit of $5000.
Crazy, indeed!
The Reserve Bank's inflation-calculator says that $34,500 is now $213,555, which is less than half $540,000, so the price of that house has rocketed far ahead of inflation. $540,000 is 2.52 times $213.555. $540,000 is 15.65 times $34,500.
The house was new, three bedrooms, in a good neighbourhood in Birkenhead, in a cul-de-sac off a cul-de-sac off a cul-de-sac so it was quiet. Lots of bush, close to schools and a supermarket. I got it on a deposit of $5000.
Crazy, indeed!