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Why does the price matter? I recently bought a house. There was "opportunity" in a "up and coming areas." It might have had up sides, but I didn't want the r
by pfranz 9y ago
Why does the price matter? I recently bought a house. There was "opportunity" in a "up and coming areas." It might have had up sides, but I didn't want the risk either. If the house price goes up I won't realize any of the gains until I sell it. That's likely going into another house. If the market moves as a whole then the price doesn't really matter (it would make "upgrading" more expensive). So I'm not worried about short term fluctuations in price. I, honestly, just want the price to stay the same.
- mars4rp 9y agobecause I can't sell my house and move to another one, I am stuck in this one until I die!!! I owe 80% of my current house value, if prices goes down even 10% I lost half of my down payment !!!
- pfranz 9y agoWell, yeah. That's why you can't finance 100% of the house and that's the problem with paying the minimum 20%. If the value drops 10% and that applies to the whole neighborhood, you still have about the same downpayment for a comparable house. You really don't want to be moving around often, anyway. If the house stays the same and you move in a year or two (before you build much more equity) you lose money in fees...not to mention what a pain in the ass moving it. The only time your'd fully realize any gains or losses (outside of being upside down) is when you downsize or move to an apartment. That's never really anyone's goal. A house is a terrible investment tool and shouldn't be seen as one.