Quote:
Originally posted by Joeaksa
Bought my house here in Phoenix five years ago for $205k. It went as high as $595k in the balloon market last year and now has stabilized at $400k and is now increasing in value again. I owe around $160k for the house.
Good friend of mine bought her house four years ago in a better area than mine is in (around a shopping center that is going wild) for $251k. Value went up to $690k last year then stabilized at around $590k. Its now on the raise again.
Please tell me where you can live in a house and make money like these two houses have done? I am ok with breaking even as its better than ever paying rent but when you can live in a house and double or almost triple your money in 4-6 years thats hard to beat.
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there is no profit unless you realize a gain from a sale and bank it. go back and read the article in detail.
we bought our house several years ago for 400K. Let's say, for arguments sake, our house appreciates to 1 Million $ in the next couple of years. so what? if we sell, we have to go somewhere. to make a "profit", we have to downsize, which usually means living in a less desirable neighborhood or moving to another part of the country. The only difference in the 1 Mill $ valuation is the joy of paying higher RE taxes.
Don't get me wrong, I'd still own over renting, given all the joys of home ownership. However, our house is not an "investment",a profit-maker. It's a money pit. It's an asset for the bank. To us , it's a liability.
It will be a benefit to our kids and grandkids one day in 30 years after it's all paid off. they can sell it and buy a motor yatch or something.