Merkin wrote: ↑Sun Jan 30, 2022 5:12 pm
Chicat wrote: ↑Sun Jan 30, 2022 2:51 pm
Any of you Old Heads remember when being a millionaire meant you had fuck you money? Now I feel like that’s $5-10M and would still depend on where you lived.
The number of people who live in million dollar homes in California with just a middle class income is staggering. Not for me, but for the early baby boomers, who kept buying and selling here and reinvesting in their home.
OK BOOMER!!!
Just that the tail end of the baby boomer generation didn't get the good jobs and good houses the beginning and middle of the baby boomers did.
But yes, I have a house in California (with a mortgage) and a great pension plan.
I'm in an "inner east" suburb of Melbourne.
Our house is a 1950's 3bed/study/2lounge weatherboard on a medium sized block with low maintenance native garden.
We bought in 1986 for $85k. In 2007, we added a $200k extension paid for with a $250k 'equity loan' which was about a quarter of the amount the bank was willing to lend. So the bank was valuing the house at close to a million in 2007 (I don't know how much they were figuring in the value of the extension which had not been built yet). We paid off the extension in less than 10 years but we kept the equity loan at a minimum balance so we can actually do damn near anything we want whenever we want. So far the house has paid for 2 cars and a couple of overseas trips and is basically still in the pay the mortgage off anytime we want range. We actually use the account as our everyday expenses account - bills, groceries, etc.
Median prices for Melbourne Metro are $1.2M. Median prices for my suburb are $1.8M. Recent sales in my street are between $1.3M (for a 3yo 2bed bland post modernish shoe box) to $2.5 mil (for a well restored brick stucco 1950's California Bungalow with a second story addition).
Our place would probably be under $2mil at the moment, but not for long the way prices are going.
We probably need to put some money into the garage before considering a sale though. Removal of the neighbors giant fig tree about 20 years ago has resulted in a lot of subsidence at the back of the garage that wasn't helped by a new sewer connection installed with the extension.