02-13-2011, 05:01 AM
I dont think "on fire" to the recent 2003-2006 standards but briskly to the 2000-2002 Hawaii standards when things were moving briskly but not run-away.
If in the 1st quarter of 2003 you bought a house for $165K, today it would have appreciated to $175-180K (that is US Dept of Housing stats based on actual sales). Appreciating $10-15K in 8 years is probably just slightly more than having the money in a regular savings account lately which isnt a great deal. You are increasing your asset to debt ratio on the house by making the payments, tax write offs, and well you can remodel as you want! All big pluses to me.
If you bought in 2004,5,6 - yes it isnt pretty at all but someone has to buy high and sell low or someone cant buy low and sell high. I am not making any statement about fairness or if it is right, it just is. Just the same as if you watched say Microsoft stock and finally bought the day before Bill Gates went on extended medical leave and their stock dropped - the same stock that someone bought low and decided the day before the announcement to sell.
If in the 1st quarter of 2003 you bought a house for $165K, today it would have appreciated to $175-180K (that is US Dept of Housing stats based on actual sales). Appreciating $10-15K in 8 years is probably just slightly more than having the money in a regular savings account lately which isnt a great deal. You are increasing your asset to debt ratio on the house by making the payments, tax write offs, and well you can remodel as you want! All big pluses to me.
If you bought in 2004,5,6 - yes it isnt pretty at all but someone has to buy high and sell low or someone cant buy low and sell high. I am not making any statement about fairness or if it is right, it just is. Just the same as if you watched say Microsoft stock and finally bought the day before Bill Gates went on extended medical leave and their stock dropped - the same stock that someone bought low and decided the day before the announcement to sell.