Here's a a more modern example for you. The house that I'm leasing in Melbourne at the moment was purchased by the current owner at auction in 1997 for $205k.
In that time he's probably given it a coat of paint and installed an airconditioner but nothing else has been touched. It's now valued at approx $850k and it's basically a knock down job. This house has quadrupled in value in 16 years and that's with nothing being done. A great investment for the landlord but has the average salary quadrupled since then?
We bought a house in 2005 and sold in 2010 doubling our money. My salary sure as hell didn't double in that time.
