Quote:
Originally Posted by fintstone
I lost (on paper) 68% on my LV home (that I bought in 2006) in the crash. I just kept making the payments. My word is good, and I said I would. Maybe there are other folks like me.
Your house should be worth quite a bit more than you owe as you should have been making payments for almost 20 years (assuming you did not pay cash). You bought at a better time than I did...and things have improved a lot since 2012.
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This house is still quite a bit away from it's value in 2004. Nearby new homes of this size are roughly the same as that value if not a bit more..But yeah I am ahead of the game..at least for now..
Counting homes as Piggy Banks started in Cali in the mid to late 70's..with the Carter era inflation. In 1978 my Dad's house was valued at 48K almost overnight it went to 150K...Porsches were 6500 then to 15K... It was a delayed reaction to Nixon taking the USA off the Gold Standard..and substituting a FIAT currency..backed by nothing.
People should not count on homes being Investment vehicles aka Piggy Banks...they are an Overhead expense being a place to sleep at night. That was the way it was.
Homes because of the declining value of the MONEY..USD are reflecting the value of that money..which over the years has been a declining asset...wonder why the Stock Market is up..cause you money is worth the value of used toilette paper...
Look at this way..the economy is DEAD DEAD DEAD and is on FED and Treasury Life Support... 50 % of GDP is accounted for by govt spending...WOWSER!!! Meanwhile as a reflection of ALL THAT MONEY BEING PRINTED THE REAL VALUE OF THE MONEY HAS PLUMETTED and it's REAL VALUE is reflected by Equities and to some extent RE. Which has been up up and up and away...
The shyte will hit the fan when Corp cash flow starts to fall as they can't sell anything cause so many are unemployed and have no money to buy buy buy.. that is why so many retailers are now in BK and commercial RE is tottering on the brink because of it...no sales.
So far Disney furloughed 43K employees and is now laying off a further 28K...cash flow is way down..meanwhile they are leveraged to the hilt..on cheap money which they bought back shares of their own stock. if cash flow slows enough they might not be able to service the leverage...then it is BK or spin off of assets time for Disney.
Royal Dutch Shell is layig off I thnk about 7800...