> sold within a week for 700k
> got the house for 70k in the 70's
For perspective, the S&P 500 was at 68.56 in 1975 and began 2014 at 1848.36, a 27 fold gain. You also wouldn't be paying ongoing real estate taxes, etc. So the house bought in the 70's wasn't that great of an investment, long term.
Pop is a mechanic and will likely die under a car (we've come to accept this). His know-how of the S&P is suspicion at best as he has no formal algebra-2 training (due to Vietnam and all). He did not buy the house to generate a return, he bought it because he needed a pot to piss in, a bed to sleep in, and a house to raise a family in. Our home is not worth only money.
My intent is not to judge your pop, but to put the 10 fold increase in the value of the house in perspective.
BTW, when I work under my car, I put two sets of jack stands under it, and don't work alone. When I was a kid I jacked up my car and put cement blocks under it to hold it up. Before I slipped under it, the blocks crumbled and the car collapsed onto the ground. Yikes! Glad I was able to learn that lesson the easy way. Best regards to your pop!
No, I meant it quite literally. He uses jacks and has seen many friends die for lack of them. It's not an accident that will kill him, just old age or a heart attack of a sort. We are pretty sure that Mom will walk out to the garage one day and find him dead under a car with what he really loves to do.
Historically America residential property has been a zero return investment. It kept up with inflation and that was it. It's only recently that America has seen the boom and bust property cycles that affect other parts of the world
For perspective, the S&P 500 was at 68.56 in 1975 and began 2014 at 1848.36, a 27 fold gain. You also wouldn't be paying ongoing real estate taxes, etc. So the house bought in the 70's wasn't that great of an investment, long term.
http://www.1stock1.com/1stock1_141.htm