Maths and Voodoo
Discussion
Groat said:
If a landlord bought a flat in 1989 which cost £11k and now 30 years on sold it for £44k.........
.......and £1 today is worth 25p at 1989's value.....
......can that landlord be truly said to have made NOTHING on the property in real terms?
Not doubting your figures, but £1.00 - 25p seems ott?.......and £1 today is worth 25p at 1989's value.....
......can that landlord be truly said to have made NOTHING on the property in real terms?
Groat said:
O in reality I think it's closer to 40p (maybe even 50p) but that wasn't really the point.
The point was, in terms of gain, should inflation be taken into account?
In terms of gain ?, to you mean capital gains ?The point was, in terms of gain, should inflation be taken into account?
You can look at a gain in anyway you want, but if its for legal, or tax reasons, then there will be rules
Groat said:
O in reality I think it's closer to 40p (maybe even 50p) but that wasn't really the point.
The point was, in terms of gain, should inflation be taken into account?
Ah, right. The point was, in terms of gain, should inflation be taken into account?
I'm not really sure how you would look at that tbh.
I assume any rental income kept pace with inflation? (Although I don't know how that helps)
Groat said:
If a landlord bought a flat in 1989 which cost £11k and now 30 years on sold it for £44k.........
.......and £1 today is worth 25p at 1989's value.....
......can that landlord be truly said to have made NOTHING on the property in real terms?
I think the issue is that one is cost, the other is buying power........and £1 today is worth 25p at 1989's value.....
......can that landlord be truly said to have made NOTHING on the property in real terms?
So the money has gone from 25p to £1.
The house has gone from £11K to £44K.
4x vs almost 4x.
Now if you could take the £44K back to 1989 in a time machine, that's when you really get ahead...
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