Jan From Brady Bunch Cashes In

[Clyde]

‘Brady Bunch’s’ Jan sells home she bought at $55,

[frankdracman23]

I heard the buyer was George Glass.:ylsuper:

[Jumper_Dad]

I heard the buyer was George Glass.:ylsuper:

 

Winner!!!

[littleluck55]

Because what 11 year old doesn't buy a house.

[woodsrider]

On the surface it looks like a great ROI but is it really? What should you expect from a 47 year investment of $55,000? At 8% per year you would have $2.3ish. If you can 10% it jumps to over $5 million. When you figure in what she paid in property tax and insurance and up keep for 47 years, maybe not as great?

[Clyde]

Because what 11 year old doesn't buy a house.

 

That's what jumped out at me from the story.

[Clyde]

On the surface it looks like a great ROI but is it really? What should you expect from a 47 year investment of $55' date='000? At 8% per year you would have $2.3ish. If you can 10% it jumps to over $5 million. When you figure in what she paid in property tax and insurance and up keep for 47 years, maybe not as great?[/quote']

 

Correct from an investment perspective.

[woodsrider]

Still a cool story. Would she have to pay capital gains?

[Clyde]

Still a cool story. Would she have to pay capital gains?

 

Yes

[NEERFAN]

I'd love to see more pictures, I know the Malibu Beach houses I walked past makes hers look like a favela.

[Jumper_Dad]

On the surface it looks like a great ROI but is it really? What should you expect from a 47 year investment of $55,000? At 8% per year you would have $2.3ish. If you can 10% it jumps to over $5 million. When you figure in what she paid in property tax and insurance and up keep for 47 years, maybe not as great?

 

But she also had the use of that house for 47 years, what would similar accommodations have cost her year in and year out over that time? When you factor that in, it makes the investment look much better....IMO.

[lawildcat]

I'd love to see more pictures, I know the Malibu Beach houses I walked past makes hers look like a favela.

 

 

Look quickly. It's being torn down.

[UKMustangFan]

Still a cool story. Would she have to pay capital gains?

 

Yes, a whole hell of a lot of them too. Unless something has changed in the past year or two with how it's calculated, I believe it'd be....

 

$3,900,000 sales price - $250,000 profit exemption - $55,000 initial capital investment = $3,595,000 of taxable capital gains. :eek:

 

You'd also be able (I believe) to deduct any improvement costs incurred over the life of the home.

[woodsrider]

What about property tax? Can that be deducted?

[BirdBrain]

But she also had the use of that house for 47 years, what would similar accommodations have cost her year in and year out over that time? When you factor that in, it makes the investment look much better....IMO.

 

Let's assume she didn't live there and rented it for 40 of the years. Let's also assume she rented on the very low end for $5000 / month or $60,000 / annual less expense.

 

I'm assuming, all capital gains aside, that $2.4 million in rental on the low end over 40 years makes this a stellar investment, irrespective of condition today.