Quote:
Originally posted by 930addict
I just bought a house in San Jose, CA for 250k under appraised value. We were originally thinking of staying their but after reading all the posts about the RE market going south, I'm wondering if I should just dump the house and put that 250k in the bank? If I sell and the bubble pops my circumstances would be more than favorable. On the other hand what if the bubble doesn't pop?
What would you guys do in my situation?
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If you're that far under market value, you've already benefitted from a value drop. If you like the place, stay there. There are still plenty of tax benefits to reap, as long as you're not overextended paying for the house.
Most recent house purchasers are counting on 104 paychecks a year to cover all their costs -- especially Californians. If you can accommodate a business and income downturn, you're in great shape to ride out anything that happens in R.E.
Remember: when the market goes down, you don't lose unless you sell.