Housing prices

z987k

Well-Known Member
Using myself as an example - my house sounds great in the last 7 years. Definitely worth more than I paid for it, but I've forked over $80,000 in interest, and $75,000 in taxes and insurance for the "investment." That's about the premium it would sell for over what I bought it for. Had I just bought it and not lived in it, it would be a substantial loss in real dollars. It's been a nice place to live though.
Given all that, the way it makes sense for a lot of people, is that they have fairly low income - say sub 50k and also are too undisciplined to save/invest. At the end of 30 years, even though they still don't have a dollar in cash, they have a free place to live/400k or whatever in at least 1 asset.
That scenario is for the Dave Ramsey types.
 

proxima3003

Well-Known Member
We sold our house in the Denver area last fall when we moved to Asia. I did consider renting it, but I really think that particular area is very due for a correction. The median house price in Denver is now over $400k, and this is for absolute crap that needs a lot of work. I don’t regret selling it at all, and we’re staying out of the market for a few years until some sanity returns.
Same reason I left Denver... can't justify paying half a mil for a cookie cutter house.
 

chrisreedrules

Master Blaster
I’ve been doing extremely well in real estate these past 5 years. I started with a single rental 5 years ago and as of this June I’ll have 3. I pay very close attention to the local market and consider myself very savvy when it comes to where I want to park my money. It varies street by street in some neighborhoods. Local knowledge is key.

I think I’m done buying in the current market though. The really good deals are drying up and home prices are rising even faster because interest rates have stayed so low. There is still very strong demand despite the rising prices however.

Personally I’m waiting for the next downturn... The question is whether to buy stock while it’s cheap or another rental property or two.
 
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