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KittyGags
LIF Adult
Member since 7/09 5614 total posts
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Re: anyone else get upset over their house losing value
We bought in 2009 after the collapse and thought we were getting the deal of a lifetime.
We refinanced last week and we appraised 40K under where we were last year. 
Annoying, but we're not going anywhere anytime soon.
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Posted 11/18/10 11:12 PM  |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: anyone else get upset over their house losing value
We bought our primary residence in 2004 and we would still make money if we sold now. However one of our rental houses which bought for practically nothing is worth even less but we've only had at a couple of years and we've had a decent rent roll so I'm not worried about it.
Here's the way I look at short term ( 5 year) real estate "losses"-
you bought a house, paid whatever you & you lender agreed it was worth during the height of the recent market, most homeowners get some tax advantages yearly, you probably would have paid at least $2k per month to rent something even close to the size/location/comfort level of your house and the value today really doesn't mean anything unless you are trying to sell or refinance.
So if you take away to money you would have paid as rent, the tax savings you got and the value of the memories your family made in YOUR home...its probably not as severe as it seemed at first.
I understand some people that responded here would like to move & now its very hard but realistcally speaking those that knew they wanted to trade up within five years of a known real estate bubble would have been better off renting unless they were sure they were buying a home way below bubble prices.
Also if you haven't done it already-greive your taxes.
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| Posted 11/19/10 6:43 AM |
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RocPin
Life's Beachy <3
Member since 2/08 6765 total posts
Name:
Heather
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Re: anyone else get upset over their house losing value
Posted by KevinNKristin8-15-08
I know exactly how you feel. I bought in very early 2008 also and since my house dropped in value by 60k. It's completely ridiculous. And to think of what I could have gotten now for the same amount we paid makes me sick. I could have doubled the size of my house. I know I can't think like this and we all shouldn't, we had no way of knowing, but I beat myself up over it constantly.
I hate my house and cannot wait to move. It just stinks that we are stuck right now in our starter home. So the house dropping that much in value makes me feel even worse.
I feel the same way. I bought Jan 09 and it has dropped $30k
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| Posted 11/19/10 7:27 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: anyone else get upset over their house losing value
Posted by KellyFG
I understand some people that responded here would like to move & now its very hard but realistcally speaking those that knew they wanted to trade up within five years of a known real estate bubble would have been better off renting unless they were sure they were buying a home way below bubble prices.
I said that I wasn't that upset, but I don't think that this comment is very fair Kelly. Prices were increasing so much, so fast. The bubble was not bursting for so long. People kept saying it would, but the market kept going up (I know my house went up $75K after I bought it)
We made $80K in ONE year on our CA house - it's easy to say in hindsight that people should have waited, but it wasn't the reality back then.
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| Posted 11/19/10 7:29 PM |
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Teri
my girls!
Member since 2/06 1491 total posts
Name:
Teri
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Re: anyone else get upset over their house losing value
I don't think it's fair to assume a large group of people are better off renting for several yrs vs buying in a competitive market....who knew when the bubble would burst, how bad it would be, etc. The mortgage nightmare was much worse than many were expecting as well.
We watched the market for several years before we bought and it just kept getting higher and higher. We didn't buy at the height of the market, but we def. would lose a lot if we sold right now.
But I don't regret anything - for many reasons it was beneficial to own our house....now we're going to keep it as a rental property and maybe a long term investment.
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| Posted 11/19/10 7:53 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: anyone else get upset over their house losing value
Posted by KellyFG
Here's the way I look at short term ( 5 year) real estate "losses"-
you bought a house, paid whatever you & you lender agreed it was worth during the height of the recent market, most homeowners get some tax advantages yearly, you probably would have paid at least $2k per month to rent something even close to the size/location/comfort level of your house and the value today really doesn't mean anything unless you are trying to sell or refinance.
So if you take away to money you would have paid as rent, the tax savings you got and the value of the memories your family made in YOUR home...its probably not as severe as it seemed at first.
I'll agree that it may not be as big of a deal if you aren't refinancing or selling. And real estate is long term. But I definitely disagree with the bolded point.
Typically I have found that when you add mortgage taxes PLUS real estate taxes, you typically are paying more than what you would pay for a comparable rental (as you described).
If your house dropped 50k, that is pretty severe no matter how the person wants to spin it! You just lost 50k from your portfolio. Especially when you already paid a ton of those taxes and interest. So as far as being in a 2k rental, you are basically breaking even... WITHOUT losing 50k of net worth.
Tax advantages of owning don't outweigh the loss of net worth when your house declines in value drastically.
Many people really over-estimate home ownership tax advantages. Remember the golden rule: in order to get tax savings, you need to first PAY TAXES.
Message edited 11/19/2010 8:03:39 PM.
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| Posted 11/19/10 8:02 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: anyone else get upset over their house losing value
We bought in 1996 so ours is almost triple what we paid so we are not upset at all.
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| Posted 11/19/10 8:09 PM |
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JennP
LIF Adult
Member since 10/06 3986 total posts
Name:
Jenn
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Re: anyone else get upset over their house losing value
Posted by ave1024
Many people really over-estimate home ownership tax advantages. Remember the golden rule: in order to get tax savings, you need to first PAY TAXES.
That is a great point.
Unless you are buying a house for the sole purpose of renting it out, you cannot measure whether or not a purchase was wise based on the timing of the market and current value of the house because there is an emotional factor that you cannot put a price on. There's pride in ownership, the ability to do as you please with it, etc.
Everyone really has a different take on this, anyway. My BFF and her husband are happy renters. On average they have less stress and more disposable income than I can remember having since I became a homeowner in January 2003. They aren't that interested in owning and it won't be happening any time soon.
DH and I feel differently - we believe the responsibilities of homeownership are outweighed by the benefits.
Everyone is different.
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| Posted 11/19/10 8:20 PM |
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