01-17-2009, 04:50 PM
Just for perspective - You say your house is worth 50% what you paid in 2005 - what was it worth in 2002/2003? Near what it's worth now?
I weathered my own storm years ago. Bought a townhome in the greater DC area in early 90's during a time when prices were up. As noted, life changes and 3 years later we were moving to Ga. I was shocked to learn my house had lost value if I tried to sell it. I was able to do a lease purchase for what we paid for it. Basically, I'd break even month to month. Ended up extending the lease purchase and by the time it was completed, I was wishing the tenants would default just so I could put it on the open market, which was now beginning to soar. Actually, I was really glad to be done with it.
At least one financial advisor I know says your home should not be counted as an investment - yes, counter to the market hype. His point is, we have to live someplace. Unless your homeless, you're paying rent or a mortgage etc). You don't expect your rental value to increase.
As been stated even here on PW many times, need to take the long view. If not having to sell/move then just wait it out.
BTW, given such a drastic change are you going to challenge your county evaluation to make sure taxes reflect this new, lower value? If so, PLEASE keep us informed how that works - could help others.
In any case best of luck whatever your situation.
David
Ninole Resident
I weathered my own storm years ago. Bought a townhome in the greater DC area in early 90's during a time when prices were up. As noted, life changes and 3 years later we were moving to Ga. I was shocked to learn my house had lost value if I tried to sell it. I was able to do a lease purchase for what we paid for it. Basically, I'd break even month to month. Ended up extending the lease purchase and by the time it was completed, I was wishing the tenants would default just so I could put it on the open market, which was now beginning to soar. Actually, I was really glad to be done with it.
At least one financial advisor I know says your home should not be counted as an investment - yes, counter to the market hype. His point is, we have to live someplace. Unless your homeless, you're paying rent or a mortgage etc). You don't expect your rental value to increase.
As been stated even here on PW many times, need to take the long view. If not having to sell/move then just wait it out.
BTW, given such a drastic change are you going to challenge your county evaluation to make sure taxes reflect this new, lower value? If so, PLEASE keep us informed how that works - could help others.
In any case best of luck whatever your situation.
David
Ninole Resident
Ninole Resident