dandxg
Registered: Oct 2005
Posts: 2914 |
11-05-09 08:06 AM
Quote from saxon22:
1. Well, that means that you bought a house that was too expensive since really the money you have invested in that property is needed somewhere else.
2. Sell the place and either buy a smaller house, a condo or start renting.
3. I still remember when I rented my first apartment, it was $264 a month, now it probably goes for at least a $1000.
4. You should not think of your house as an illiquid investment. Do you consider a car as an investment? A house is a place to live and grow your family, not some magic trick that will make you rich in 30years.
1. Not really not many pay cash for a 300k house. I am way ahead of the curve have put down 30% and have a 15 year note. Plans don't always work out the way you think they will.
2. I couldn't sell in less than 1year, w/o taking a big hit. There are 2 of my same model on the street and one has been on the market for 1 year, just went bank REO. There are 2 other foreclosures. I live on nice street, yuppie by most standards. I just did the number and if I leased my place, by the time all is said and done I would only save $300-400 a month moving from a big house to a 2 bedroom. Not worth it.
4. Yes I have rented many apartments too. You generally get lower quality neighbors due to the transient nature.
5. Car to a house, comparing apples and oranges. Homes generally appreciate esp. if you hold over 10 years, cars generally depreciate once you drive off the lot.
Post edit: I didn't buy at the height of the bubble. I bought 6 years ago not 3. I paid cost, the same as the original owner 1 1/2 years later. Denver is a weird RE market. Parts, like mine, have so much land you can buy new for almost the same as used if you don't mind a further commute. It will bounce back but it may take a few years. Companies like Costco and Best Buy don't spend millions without doing target demographic research.
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