Gear prices - again - rant

[sax4blues]

You really think so? A Corolla listed for somewhere under $3k in 1974 which be around $17k today but a Corolla base lists for over $20k now.

I am considering the increasing longevity. Without any data I don’t believe the 1974 Toyota, not known as a high quality car, was running well past 100k miles. My in-laws Corolla is going well with no major repairs at 220k mile. So cost per mile has gone down even with increased purchase price.
I have no idea all the details of economic calculations, but I do know that my material possession lifestyle is technically far superior to my parents with a similar economic career path as theirs.

 

[burntfrijoles]

I am considering the increasing longevity.

That's true and it's a good point. Technology and manufacturing methods have improved greatly along with QC. People are keeping their cars longer than before but most probably trade their cars too often.

I don’t believe the 1974 Toyota, not known as a high quality car, was running well past 100k miles.

Perhaps not but the same could be said of other vehicles as well. Plus it was the better quality of imports from Japan that eventually forced domestic car makers to up their game. The fit, finish, etc on 70s US cars was awful.

 

[nojazzhere]

The problem is that the $8,000 house in 1950 is nothing like that $350k house today....or even $2000k for that matter. If you compare apples to apples, that $8,000 would be similar to a $140,000 in my area. So, average income in 1950 would be about 40% of the home cost. I earn about $52,000 these days, so that would be about a $140,000 house.

That is an over-simplified argument I understand, it doesn't take into account regional differences, but neither is that assumed in the $8,000 home example either.

My parents purchased their first home in 1971 after saving up for 5 years. It didn't have central air nor heat, bad windows, bad roof, bad wiring. It was a handyman special converted from a single room schoolhouse. That is a big part of the difference, people are not buying such homes today, they are buying mansions compared to the houses in the '50's or even in the '70's.

My current home of 15 years cost me $69,000 while I was making $45,000. It needed a lot of work, and it took me a good 8 years to get the major stuff repaired / replaced. Today, it is valued at $185,000 which is a pretty cheap house for this State. Two story, 4 bed, 2 bath, 3 car detached garage, and a 1.5 acre corner lot.

I do feel that homes are over-priced, but I also think people expect WAY too much when they are starting out. You don't get to start at the top and you shouldn't expect to start off with some luxury estate either.

I feel a large part of the blame for buyer's expectations today are directly due to the HGTV-type shows on TV.
I see episodes (or used to.....don't watch them anymore) where potential buyers walk into a PERFECTLY good and functional house, immediately announce, "Well, this is a total gut job", and proceed to destroy the entire place. I know....the destruction makes for "good" TV for some viewers......I find it sinfully wasteful. But then viewers of those shows often go out and replicate that behavior.
I honestly don't understand how first-time home buyers can ever get into a house these days......there aren't really any "starter homes".

 

[Milspec]

I feel a large part of the blame for buyer's expectations today are directly due to the HGTV-type shows on TV.
I see episodes (or used to.....don't watch them anymore) where potential buyers walk into a PERFECTLY good and functional house, immediately announce, "Well, this is a total gut job", and proceed to destroy the entire place. I know....the destruction makes for "good" TV for some viewers......I find it sinfully wasteful. But then viewers of those shows often go out and replicate that behavior.
I honestly don't understand how first-time home buyers can ever get into a house these days......there aren't really any "starter homes".

I fell for that as well, too many years watching "This Old House" convinced me to buy an 1860 house with plans to renovate it. After the 8 years of effort and close to $40k invested, I was ready to punch Bob Villa in the throat. I love old houses, but there is no such thing as a "simple project" when working with them.

First time buyers do have options still. When rent has grown to the point of equaling a mortgage payment and banks are handing out no money down paper...they can still purchase. You don't get to live in the exciting downtown area or even in some cities at all, but you can always relocate to find something in your price range. Nothing prevents one from moving for a better opportunity...something that used to be a common act.

Prices are stupid high, however, you will never get me to argue otherwise, but there are still opportunities.