THE SCENARIO
When they moved to Southern California in the early 1960s, a couple of my relatives bought a nice house in the hills overlooking the ocean in a tiny artist community called Laguna Beach. Fast forward to 2018, and everything has filled in around them, including a Ferrari dealership and the kinds of folks with the kind of money that allow such an establishment to remain open year after year.
Changing the dates and values a bit to protect their privacy, they bought their house in February 1962, for 32,000. Today, in February 2018, that same house is worth 1.5 million (most of which is the ground on which the house sits - it's far more modest a building than the neighbors have). That is, it's now worth nearly
47 times what they bought it for.
The Question: What's the average annualized appreciation of my ...
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