(Closed) Anyone else screwed by the housing market?

posted 7 years ago in Home
Post # 3
Member
195 posts
Blushing bee
  • Wedding: July 2011

We are with you! We are trying to move to where my Fiance is going to school (we are in an LDR right now), and we will potentially have a $30,000 to $40,000 loss so we can get out from under my house so I can move to be with him. We considered renting but are worried about damage too, plus the stress of trying to manage a property from very far away.

So frustrating. i thought when I bought a house at 25 that I was making a great financial decision for myself to get me set and stop wasting money on rent. Now I’m looking at it completely wiping us out, and then putting us in debt to pay the loss on top of that. This is such a stressor! 

You are right that it might just be better to keep it empty until you can find a trustworthy renter or the economy improves. But you will have to determine your breaking point of when you have to cut your losses and move on. 

Post # 4
Member
150 posts
Blushing bee
  • Wedding: November 2011

@sparkles_10: your second paragraph is my life exactly.  so. frustrating.

 

I have a condo we can’t sell because of all the foreclosures in the building.  And Fiance has 4 job offers, all in different states.  So we’ll be married and living apart for a couple years because the idea of being a long distance landlord makes me far too nervous.

Post # 6
Member
638 posts
Busy bee
  • Wedding: August 2011

Augghh…your post is scaring me so bad. I’m in the same position. Bought a condo, met my Fiance a year later, and I’ve now moved in with him. We’re getting ready to contract with a property management company to rent it out since we’re in a different state.

I am terrified that renters are going to trash the place, but I’ve been out of work and just can’t afford to keep up the mortgage at this point. And we would lose at least $20k by selling, if not more. I bought right before the bubble burst…awesome.

It seemed like a great decision when I bought it…not so much now. Oh well, it will work out in the end somehow. But it has been and still is a MAJOR stressor.

@sparkles_10: Except for the age, that is exactly how I feel.

Good luck to you all!

Post # 7
Member
1200 posts
Bumble bee
  • Wedding: October 2010

I believe it. I think the housing market in Phoenix and Las Vegas has been hit the hardest…my aunt and uncle just got bought a fancy condo on the Strip for $600,000…if they had bought it 2 years earlier it would have been closer to $2 million. My parents are looking to buy a house in AZ and a three bedroom free standing house with a pool is going for around $75,000. On the other side, my best friend bought a townhouse 4 years ago for around $150,000. A larger unit next to her sold for just over $70,000. It’s nice for the current buyers, but so sucky for homeowners who bought several years ago. I would need both hands to count all the people I know who walked away from their mortgages.

 

As far as renters, I don’t know why. I’ve been a renter longer than a homeowner, and while I’m no neat freak, I would never trash a place. But based on what I’ve heard from other landlords, it’s a common occurance. If you are finding that you’re getting stiffed on rent anyways, I think it is very wise to just leave it empty.

Post # 9
Member
3943 posts
Honey bee

Its very scary out there, especially for a starter home. We bought last year and hope to sell in 7-10 years and move to our “forever” home….but who really knows what will happen to the market. Our starter home could end up being our forever home.

Post # 10
Member
1200 posts
Bumble bee
  • Wedding: October 2010

@ohheavenlyday

Yeah, I know someone who stopped making mortgage payments on their house Nov of 2009. They didn’t have to move out until Oct 2010.  I do believe their personal credit took a hit of close to 200 points though, and they are not eligible for any kind of home/installment loan for 2 or 3 years.

 

Post # 11
Member
3363 posts
Sugar bee
  • Wedding: September 2009

I would lose about 30,000 selling the condo I bought before meeting my husband.  Luckily we have some really good tenants right now.  She is an editor and he is an electrical engineer.  They are calm, quiet, nice, and always on time with the rent.  I would be shocked if there was any damage when they leave.  I guess I lucked out!!  I hope they stay for a good long while!

ETA:  My neighbors (where I live now with DH) can no longer afford their townhouse, and have decided on a short sale.  Other places in the complex are selling, but their’s just simply won’t.  They are very likely going to lose it to forclosure.  It is down to 170,000 which is WAY low for this complex.  Other places are selling for mid to high 2’s.  And since they are 2 houses down from us, our place will likely lose value due to their price.

Post # 12
Member
1508 posts
Bumble bee
  • Wedding: October 2009

We are stuck in a condo we don’t want to be in. I owned a condo that I bought in 2001 and sold in 2009, I made a small profit but much much less (100,000)than I could have made in 2007. Ugh. My Dh bought in 2005 at the height of the market.  We would have to spend 75% of my nest egg to get out. Ugh and what stinks even worse is houses prices are going up again and condo sales are flat partialy due to new requirements for lending in Condo projects. Article in last Saturday’s Washington Post about this very issue.  We also can’t refinace due to be under water so we can’t get the wonderful low rate available now. It also really hurts because we are in our late 30’s, so less time to recover.  I would also not prefer to have kids in a condo, but if e are going to have kids it will have to be in the condo.

Post # 13
Member
1137 posts
Bumble bee
  • Wedding: September 2010

I bought my first house in 2004 and lived in it for 5 years before Darling Husband and I bought a house together. If I were to sell that house now, I’d probably get an offer around $25,000 less than I paid, but I made lots of cosmetic updates and the house shows well. If I were to have left it as-is, I probably would have been out a good $50,000. However, I am not confident that it would appraise for that much due to the number of foreclosures and short sales in the area.

I also bought a rental property in 2007 a block away from my first house which was a foreclosure. I’m probably about even in terms of value on that property.

So I’ve been a landlord at my rental property for 4 years and 1.5 years for my old home. Luckily, I’ve had great experience with my renters and I make a profit each month after paying expenses (which I put into savings for when something big needs repairing). I’ve had 3 different sets of tenants in my rental property, but each of them left it in very good condition. I’ve only had one set of tenants in my first home, so I’m hoping they’re keeping it up well.

Darling Husband and I plan on holding onto both properties (and recently put in an offer for a third rental property) and hopefully they will pay for our retirement one day!

Post # 14
Member
7587 posts
Bumble Beekeeper
  • Wedding: December 2010

Has anyone in this situation thought about a rent to own agreement?  A lot of people who would love to buy your house dont have good enough credit.  You can “rent” it to them essentially, while paying down the mortgage, and allowing for them to eventually purchase your home when their credit has improved (or they have a big enough down payment). Most of the time they are desperate to get a home so they will pay more than market value.

Post # 15
Member
1701 posts
Bumble bee
  • Wedding: October 2010

I could have written this post.  Last year I had to evict my renter a month before the wedding, as if I had an extra $1,000 for a lawyer at that time.  Between things he broke and maintenance issues he didn’t tell me about, I’ve spent about $3,000 on repairs.

I do have another renter now, but she is paying significantly less than what the house costs me.

Post # 16
Member
2027 posts
Buzzing bee
  • Wedding: November 1999

I feel like I screwed myself. I own a house with my sister that is worth about $60K less than we paid for it in 2006. Luckily my sister still lives there and pays half of the mortgage/insurance/taxes. We have talked about getting renters so she can move closer to her work, but I just don’t want to deal with it, honestly. 

My husband and I own 3 acres of lake front property. Beautiful land which we planned to build on one day. But now it just seems too far away from town (it’s pretty far out), and it’ll probably take years to sell. It’s already been on the market for about a year. With no bites. Unfortunately it is the kind of property that requires a very specific buyer. 

So together that’s $1500 a month that could be in my pocket that doesn’t seem to be letting up any time soon. 

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