Proof : Property is always a good buy, long term - IT

North’s for best deals down the years

MOST PROPERTY people are tormented by the deals that they didn’t do when bargains were to be had. Maybe that time will come again, but meantime it’s an entertaining game to look back on the of the sales in recent decades.

North’s, who have been in the estate agency business for a staggering 175 years, offers a snapshot on its website of deals gone by.

Back i1963, for instance, number 1 Ailesbury Road changed hands for, wait for it, £9,500. Two years later, number 5 Shrewsbury Road was bought for £16,000.

For those still interested in buying into Grafton Street there were also some great deals there in the same year: number 113 Grafton Street sold for £20,000 but, with inflation on the high side, number 110 Grafton Street was disposed of in 1969 for a huge £66,500.

They got £30,000 for the Dolphin Hotel in Temple Bar, now the children’s court, in 1965.

For those after land, you could have got 107 acres in Tallaght for £22,000 in 1962, or 140 acres in Crossmolina for £9,000 in 1966.

Which only goes to show that property is always a good buy, long term.

"1963, for instance, number 1 Ailesbury Road changed hands for, wait for it, £9,500. "

Now the price of a pint was 14 Cent euro back then (In todays money)

Therefore you would need 67,857 “Pint units” to buy the house

If we have a pint of Guinness today at 4.50Euro we would need

305k to buy the house !

(Remember Drink has kept pace with real wage growth very well)

finfacts.ie/Private/bestpric … sindex.htm

Nice catch!

You should write a letter to Madam editor about this, don’t hold your breadth on them printing it though!

Things must be bad if the Irish Times is reduced to dusting down the old *Money Illusion *conjurers trick. :cry:

en.wikipedia.org/wiki/Money_illusion

Can I propose than on April 10th 2009, everybody changes their sig to this quote.

-Rd

wow, donnie is really pushing the houses isn’t he? It would be great if a senator were to Bring this up in 12 or 18 months.

I’m not sure I get the point.
Surely the fact that 305K wouldn’t buy you a driveway on Ailesbury Rd validates the point that buying property there was a good long term move.
I.e. Property in that Area at least has advanced far faster than wage inflation.

Unless, I’m missing something.

As a general rule, yes, this going back to the 60’s to validate today’s prices is crazy.

-Rd

The lesson is going back in time to “validate” anything is spurious.

Take 1 Microsoft share etc.

I agree. But doesn’t the Pint Index hurt rather than help that argument in this case?

-Rd

As I understand it, the relationship of food and shelter to the pint index should remain constant. So the comparison gives an idea of over-value.

Not sure I agree with it, but there you go.

very, *very *few people buy a pint as an investment.

i wonder what money most people were making back in 1963? unless it was about £5000 pa or more then a figure of 10k back then is equally as ridiculous as 1m + today.

I must be going crazy, I’m finding myself on the pin playing the role of a Bull.

You’re saying in 1963 No.1 Ailesbury Rd should have been selling at TWICE the average Salary. That can’t be right can it?

-Rd

Average annual salaries in the sixties must surely have been measured in the hundreds of pounds, not the thousands.

But I do seem to remember that in the seventies and early eighties the cost difference between a house in a new area and a house in a nice area was three to four times, so for the price of a three bed semi in Swords, you could buy a third or a quarter of one of those big red-brick houses in Rathgar. That ratio has changed hugely, as far as I can see.

It’s a BS conclusion to say that property is ALWAYS a good buy based on the examples. So the Ailesbury road gaff has increased about 600-fold since 1963. If you buy it today for say EUR8m would you expect to sell it in 2053 for EUR4.8 billion ?

The only conclusion you can draw from this is that property WAS a good buy if you bought 45 years ago! Bit of a trite statement.

Did you ever hear the Jerky Boys “Egyptian Magician”?

Here you go

video.aol.com/video-detail/egypt … 1127915355