We Live In an Upside Down World

We Live In an Upside Down World

Yes we do.

There was a time

When mortgage interest rates were over 20%

When gasoline was 25 cents a gallon

When you could buy a 3 bedroom bungalow in Mid Scarborough for under $30,000

How Times Have Changed

Back in the late 60s

interest rates were under 6%

you could buy a gallon of Gasoline for .25 cents (About 5 1/2 cents per litre)

a three bedroom bungalow in mid Scarborough was going for $25,000 to $28,000. (our first house was $27,900)

It would have taken about 5 years of my entire annual income to pay for it in cash

Today

interest rates are still below 6%

a Gallon of gasoline is is just under $6.00 a gallon ($125.9 a litre and up into the $1.30 RANGE) almost a 2,300% increase

that mid scarborough bungalow is now selling for around $425,000
just under a 1525% increase.

If I were working in the same industry today it would still take about 5 years income to buy that house.