Post # 1
Any bees frustrated with the value of your house? DH and I bought ours 2 1/2 years ago. I think we paid a fair price for it. Well now the value is at least 25 grand less than what we bought it for! Some areas are better off I know, but this is just pissing me off. Our home is our investment. Some investment! Just wondering what you all thought? We will have equity in our house maybe 10 years into it if things keep going like this! OMG!
Post # 3
I am beyond frustrated. DH bought the house we live in when we were first dating. So he didn’t care that the kitchen is the size of a closet and the windows and foundation have lead paint. He was NOT planning on it being a family home, which it needs to be because we’re expecting. I’m pretty sure he overpaid to begin with and the value keeps decreasing. I just want to get out!
Post # 4
I don’t own a house yet, but I am frustrated by the market! It’s still doing quite well here.
Post # 5
We bought in an area on an upswing and have seen slight appreciation in the last 2 years. A house, like any other investment, carries risk. I think 2000-2007/8 made people somehow think that a house is a sure thing for investment, but obviously it’s not. It’s always a compromise between getting what you want and playing the market.
Post # 6
@iheartnerds: We were in the same situation (without the expecting part) and we ended up having to pay 6k and makes tons and tons of repairs in order to get out. That was after it sat on the market for almost a year without so much as a nibble. It was probably the most frustrating time in our relationship, but thank goodness it is over and our new home is almost ready for us!
Post # 7
I’ve always been taught that it’s a big mistake to treat your home like an investment. A home is really the safe, warm place where you and your family can live. Whether it is an apartment or a house, it is necessary for your survival.
Investing is similar to gambling in that you have to do your research, but ultimately whether your investment grows or loses value is rooted in market forces that are out of your control. A lot of it is plain old luck. As you found out, sometimes you get unlucky!
If your investments in say a 401k don’t pay off, you have lost money and will need to save more money to make it up. If your investment in your home doesn’t pan out, and depending on the nature of your bet, you and your family potentially might be out on the street with nowhere safe to stay, and with your credit destroyed for the better part of the next decade.
That’s how we got into the foreclosure mess – all these people treated their homes as a relatively short-term “investment” and figured they’d be long gone before the mortgage rate adjusted – or they assumed the investment was a sure thing and they borrowed against their home’s inflated value.
Don’t gamble and make bets with your home, where you lay your head at night. Buy a house you can easily afford, and plan to make it your forever home for as long as possible. If you choose wisely there is no need to “move up,” the smart thing to do is to learn to be content with the material goods and property you have, instead of always wanting bigger and more. Pay off your home quickly and then put extra money into investments you can AFFORD to take risks on.
Post # 8
Uh, housing prices here are off about $200,000-350,000 from what they were 2-3 years ago, so I bet most people would die with happiness if they were only out $25,000!
It’s actually hard to find anything that isn’t a short sale, since so many people are so far underwater.
Post # 9
My Fi’s house is worth €200,000 less than when it was bought in 2006, seriously, with no hope of recovery. I know it is frustrating but you can eventually make that up and move on if that’s what you wish 🙂
Post # 10
@crayfish: thought it wad only this bad here. Worstthings is myself and Fi both bought before we met 🙁
Post # 11
I’m not sure how many people consider a home an investment after only 2 years, even with a thriving economy and no housing market crash. I think people don’t expect much equity in their homes for 10+ years anyway. At least, that’s how I always found it to be. But, I’m sorry your house is depreciating in value. I hope for your sake the housing market and the economy pick up and then you won’t have that problem!
Post # 12
@Magdalena: “I’ve always been taught that it’s a big mistake to treat your home like an investment. A home is really the safe, warm place where you and your family can live.”
Same here. I would never view my home as an investment. We actually might have even gained some value since we bought 6 months ago as one of the similar homes down around the corner just sold for $20K more than we paid. Not that I’m planning to go anywhere anytime soon! 🙂
Post # 13
Our house hasn’t exactly appreciated over the last two years, but we are nowhere near being upside down on our mortgage. I try to pay an extra $100 directly to the principle every month, so over the course of a year, I’ve made a whole payment to principle only. This has helped us earn equity faster, but we do need to stay here a few more years before I’d even consider selling.
Post # 14
@Carolyn72: We are in the same boat. We got it about 6 years ago and I think we would only just get what we paid for it if we sold it now.
We always knew this would not be our forever house but that we would hold onto it for the long run. We have done renovations so it is a nice cozy home for us for now.
The good thing is rental prices have gone up in this area so our aim is to hopefully use it as a rental in the next few years and upgrade 🙂
Post # 15
@Carolyn72: Yes, mine has done the same thing. But it’ll come back. May take more years than I would like, but it will.
I don’t view my home as an investment, but rather “good debt.”
Post # 16
I bought a condo in 2006 because the monthly mortgage was far less than rental costs for a one-bedroom apartment. At the time it made perfect sense. i was single and figured I could live there for a number of years and then eventually move on to a small house or if I was involved with someone, we could move on to a larger, family home. Unfortunately now we’re underwater by about $15,000 and unable to sell. Due to foreclosures in our building, units similar to ours have recently been sold for less than half of what I paid. So while our value may only be $15,000 underwater, the realistic amount we might get from a buyer is far less than that. We can rent it out for a good amount, which is great news but honestly, I’d much prefer to sell it.
We’ve lived there now for six years and it’s gotten to be too small for us and our two dogs. When we were 22 and 23 it was great…now we’re ready for a ‘forever’ home that we can grow our family into. It really complicates things that we’re not able to sell the condo. While I didn’t think of my home as an investment, I also never planned to live there for 30 years. I think there’s a difference between buying a home and planning to stay for a number of years before moving on, and someone who buys a home and tries to flip it because they can’t pay the mortgage. There’s a reason they call them ‘starter homes.’ Because you start there and move on once you’ve earned equity and can afford a bit more. It is extremely frustrating. We’ve paid $10K off the mortgage, we both have made advancements in the work place and earn more money, much of my student loan debt is paid off and we’re in a position where if our home had made only modest gains in value, we could easily move and afford a nice three-bedroom home in a nice neighborhood. The frustrating thing is knowing that DH and I have absolutely no control over it.