Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I like how they mentioned hippies and preservationists back in the 70s that got involved in preserving parkslope. Thats not much different than todays hipsters who live in nearby areas of hip Brooklyn. In any form of gentrification subcultures are needed to expresss interest in certain areas which leads to buzz and other followers. A good example of this is during the 1960s east village with beatniks who wrote poetry and created art in Washington Square park and surrounding areas which helped attract buyers to the area during that era.
Sorry but there is nothing lucky about making an investment and now cashing in to make a huge profit. In fact it was inevitable.
If you invest in something now, especially real estate, 50 Years from now I'm sure that value will increase drastically.
Sorry to go on a tangent but I just don't want you to honestly think this had anything to do with "luck" or whatever that means.
Oh I don't know, think there is a very good amount of "luck" to making an investment and holding on until or if it does well.
No investment is 100% certain to return good or spectacular results. Back when these persons purchased their home and right up until the 1980's there was a very real possibility NYC could go the way Detroit and other major US cities are going now. Just look around say Chicago and see how well real estate investments from decades ago are fairing now.
No one could have predicted the extraordinary forces driving up housing prices in Manhattan the certain parts of Brooklyn and Queens.
The Bowery of the 1960's, 1970's, 1980's and much of the 1980's was the *last* place anyone would think could see any sort of luxury or high end housing. During much of the past 40 decades the place is as it always was, a place where the "unwanted" went or were sent.
Park Slope like it's surrounding areas is being driven by the huge desire for private home/townhouse living. If something happens to change that dynamic prices will drop, and drop fast.
i can tell you this , if you put 100k in the fidelity insight newsletter i have been following or any fund family newsletter, since 1987 it is worth 1.8 million today using nothing but plain old fidelity funds..
those funds were available to anyone so you didn't need a special investing opportunity.
in fact the s&p 500 has averaged almost 11% since then and that was losing a decade and with no diversification helping in the down years to pick up gains.
both the dow and s&p 500 do not include dividends in their calculations so you have to add back in about 30-40% in gains to their numbers since reinvested those dividends account for 30-40% of your total return.
for 17 years from 1987 to 2003 the markets averaged almost 14% a year.
most asset classes have compounded over time to produce splended results. the townhouse was nothing so great over so many years.
i never figured out what the growth was after expenses on the apartments we own in the 200 central park south building but i would say since the 1960's it may have beat that townhouse.
the power of compounding is amazing.
one of the things i try to stress on the cd frugal living forum is a penny saved is a penny earned but it will always be a penny unles you invest it wisely and grow it.
it is the compounding over decades of growing those pennies that grows wealth not rounding up pennies re-using tea bags and leaving them as pennies..
folks put so much time and effort into scrounging up every penny that they would be far better served spending their time learning to grow those pennies.
Last edited by mathjak107; 02-01-2014 at 03:54 AM..
Thats nothing compared to 190 Bowery st. One family has lived there since 1966 and paid $106k and now is worth $40-$70million. Its six-story, 72-room, 35,000-square-foot
Sorry but there is nothing lucky about making an investment and now cashing in to make a huge profit. In fact it was inevitable.
If you invest in something now, especially real estate, 50 Years from now I'm sure that value will increase drastically.
Sorry to go on a tangent but I just don't want you to honestly think this had anything to do with "luck" or whatever that means.
No. There was A LOT of luck involved here. When they purchased the home in 1966, they weren't saying to themselves "in 2014, this will be worth millions". They purchased a home and it appreciated in value. Back in the 1960s, people didn't purchase homes as an "investment". They purchased them as a homestead and a stable place to raise a family. All this "investing" is a relatively recent thing.
NYC real estate didn't start getting crazy expensive until the mid-to-late 1980s and now it's exploded sky high and only going higher. Whoever purchased this property in 1966 could never have foreseen this.
Sorry but there is nothing lucky about making an investment and now cashing in to make a huge profit. In fact it was inevitable.
If you invest in something now, especially real estate, 50 Years from now I'm sure that value will increase drastically.
Sorry to go on a tangent but I just don't want you to honestly think this had anything to do with "luck" or whatever that means.
Ok you have a point. The reason I said luck is because my family lived in park slope in the 70's. Grandma suggested my family buy the building but grandpa probably didn't have the money or just didn't want to. So yeah I wish that was my family lol.
i can tell you this , if you put 100k in the fidelity insight newsletter i have been following or any fund family newsletter, since 1987 it is worth 1.8 million today using nothing but plain old fidelity funds..
those funds were available to anyone so you didn't need a special investing opportunity.
in fact the s&p 500 has averaged almost 11% since then and that was losing a decade and with no diversification helping in the down years to pick up gains.
both the dow and s&p 500 do not include dividends in their calculations so you have to add back in about 30-40% in gains to their numbers since reinvested those dividends account for 30-40% of your total return.
for 17 years from 1987 to 2003 the markets averaged almost 14% a year.
most asset classes have compounded over time to produce splended results. the townhouse was nothing so great over so many years.
i never figured out what the growth was after expenses on the apartments we own in the 200 central park south building but i would say since the 1960's it may have beat that townhouse.
the power of compounding is amazing.
one of the things i try to stress on the cd frugal living forum is a penny saved is a penny earned but it will always be a penny unles you invest it wisely and grow it.
it is the compounding over decades of growing those pennies that grows wealth not rounding up pennies re-using tea bags and leaving them as pennies..
folks put so much time and effort into scrounging up every penny that they would be far better served spending their time learning to grow those pennies.
*the power of compounding is amazing*
Yes, it tis, and that also explains much of the "income inequality" you hear liberals going on about but is not exactly evil.
Persons who either understand the value of assets and to manage them will generally create wealth for themselves. That in turn is passed onto spouses and children, who in turn ....
It is not just wealthy white/Europeans either. There have been more than a handful of cases of "poor" or at least lower income working persons such as cleaners and so forth leaving pretty vast estates. Every now and then you hear of one being left to this or that institution as a legacy.
Failure to understand the beauty of compound interest is also behind two other ills that are currently plaguing America. Lack of retirement savings and vast amounts of consumer debt in particular student or other types of loans.
For the first persons do not grasp that even saving and or investing small amounts consistently over a period of decades will get you where you need to be or close to it for retirement savings. The latter is some tend only to focus on low monthly payments on debt and not consider the interest rate and duration of loan. For instance despite it's popularity in the United States a thirty-year mortgage is not always the best way to go, but rather a fifteen as you seen in much of Europe. With the former a large part of early payments go to servicing debt, therefore it takes longer to build equity.
Despite the common belief owning a home is not always the best investment of one's funds. You purchase a home for a place to live, raise a family and so forth, but according to data one has read the S&P has consistently given better returns than home ownership. This includes even investing during the "down" periods.
Again the only reason why this family can think they will get their asking price or more is because of the very hot market for townhouses/brownstones in Manhattan and Brooklyn. This trend is rather new and there is no way of predicting how long it will last.
You have other homes in the same area as that same part of Brooklyn listed for 14 million (renovated and flipped). So persons are to think they will sell at >28 million in five or ten years? I don't know about all that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.