[quote=SK in CV][quote=bearishgurl]
By chance, flyer is the home/land your MIL paid ~$70K for (in the thirties/forties?) the same home today that is presumably worth $2M? Or did she have it built/enlarged herself?[/quote]
I’m gonna guess it was more like the early 60’s, when the average cost of homes in SD was probably in the $20K range. $70K was an extraordinarily
expensive home then.[/quote]
60s or early 70s. If I remember correctly, before buffet sold his multimillion dollar laguna house there was a prop13 stink about his tax rate being so low because he had bought it in the early 70s. The $4 million property carried a $2200 tax bill in the early 2000s.
He had second property, right behind the first, bought in the mid90s, i.e. the bottom of the market. In the 2000s, worth $2M roughly half the first. It carried 6X the tax burden.
Arguably, that implies that the real appreciation of those laguna homes between the early 70s and mid-90s bottom was somewhere between 6 and 12X, a double to quadruple the rate of inflation since the 2nd house is only half the value of the first.
