And what happens next year: when the 20% down payment is lost because this POS house is only worth $ 160,000 on the market? Of course, they will email you and ask for their $ 40,000 back.
If you are planning to live in the house for 20 years, you will more than make up for that lost money with the savings on mortgage interest due to the current low mortgage rates. Like I said, it depends if you are looking for a residence or an investment.
(home is now valued at about 700K) heck if the price goes lower so what??? if you got a good loan rate (fixed for the coming hyper inflation) then you should be ok, even if prices drop another 50%, it wont matter, your payments will be the same (actually you will be paying with worthless money!!!!! as time goes by)
This is one of the nice things about the drop in home values, more folks can afford them!!!!!
all this crying about how the prices dropped on homes has been getting the politicians all worked up. dammit!!! it is good thing, as the price drops, the home is more affordable!!!!!!! is that not the liberals definition of the American dream??? (I always hated that term for home, the American Dream is freedom and liberty. only a liberal can come up with that slogan. sickening)
I bought a house last December. The price was fair at $218,000 and it had a lot of intangibles going for it, not the least of which were perfect neighborhood and a lush, private BIG yard.
That said, I fully expect to lose AT LEAST my 20% down and more. My $218,000 house will likely fall to $175,000. I knew that going in. Nobody said I was brilliant.
Here is the kicker... If the price calls to $150,000 (1990 price) I won’t be entirely shocked. I’ll be here 15 years and I expect to break even within 15 years. I guess we’ll see. People who think they will be way up in 15 years are going to be in for a rude awakening.
Needless to say, I bought about 2 years too soon. That also said, houses rent for about $1,200 to $1,350/mo in my neighborhood, so I’m in the “affordable” range of 15x annual rent. In that regard, I didn’t overpay. With respect to the credit crisis, demographics, the depression and the decade or two it will take to dig out of it, well...
I bought a HOME. Not an investment.