How much money have you lost on your house?

Discussion in 'General Discussion' started by Alucard77, Mar 27, 2012.

  1. Alucard77

    Alucard77 Kaon Gladiator Champion

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    I was just curious how much money you guys have lost on your house recently? If you feel unconfortable, you can list a %.

    I live in a nice area of NJ and I bought in 2004 which was the height of the market at $375K. Since then I have done roughly $30K of improvements to it. So it brings me at $400K-$410K.

    So recently we have been looking to upgrade. So I get a comp quote back, and now I am not sure what to do. The Real Estate broker said to list the house at $320K and we would most likely get $300K. But she wants me to do like $5K worth of fixes to it first. Now this 5K is basic shit, that any home buyer can do. This 5K is nothing major. Just spackle some cracks, paint, power wash, stain the deck, fix one area. But for a handy man, all that shit comes up quick. I would do it, but it would take me a month or more to do with having to watch my son and all vs. a handy man about a week if that.

    So, if I sold at $300K and spent $5K to do all those things. Then do the 5% sellers fee, we're talking me netting $280. That is a 30% decrease on investment since 2004.

    In Florida and other places I could see this. In the tri-state area, I am really at a loss. 30% decrease is insane. Not to mention that I actually bought my house $35K below market value at that time. The home owner that owned my house basically hit the lottery and sold the house to us because we had no house prior. She didn't need the money, she just wanted the house gone. So technically, that would make this $440K total, which would no go down to be $280K all said and done. That is a $160K difference. That is a 40% decrease!

    I am not sure what to do now. Realistically, that will cover my mortgage and make me have to seriously and heavily tap into my savings draining almost all of it for the new place. Not sure what to think.

    Also, not sure, but I may get a second opinion. The problem I have is that the comps I got were of 2-3 Bed houses with 1-2 Bathrooms. My house is a 4 Bedroom 2 Bath house. So how the hell are they comping 2bed 1bath house to a 4bed 2bath house? Doesn't make sense.

    Only in the tri state area could my taxes, commute and normal living expenses have gone up by 50% and my house decrease by 40%. By the way, I am not over exaggerating when I say that my living expenses went up 50%.

    When I moved in 2004 here is what I was paying:
    - Taxes: $4,100 then, $6600 now = 60% hike
    - Train to the city: then $229 per month per person, now $359 = 56% hike
    - Crossing the Verrazano = then $8, now $16

    We won't get into the rest. The American dream MY ASS. Don't buy a home people, its a fucking scam. I was talking to my real estate broker, and she said they don't think that the market will return to 2004 prices for at least 10 years minimum.

    Good Investment, my ass!
     
  2. Erector

    Erector I ruined the Hall of Fame

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    Ouch. We bought our place in August 2009... small place, 2 bedrooms. Cost us £105,000. Not had it valued but similar properties around here are selling at the moment for £130-140k. So hopefully we've made some, if/when we decide to sell.
     
  3. Alucard77

    Alucard77 Kaon Gladiator Champion

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    Here is something I just found out, which is fucking ridiculous! So I am not sure if this is a great state of NJ tax or something, but check out this dumb ass tax.

    It is called a Realty Tax. You have to pay it when you sell your house. So selling my house, I would have to pay the Government $1,800 to sell. Some fucking lawmaker came up with this. They didn't want to increase our taxes to an obscene level (even though mine went up 60%!) so they increased this tax. My real estate agent told me this went up 300% in the last 3 years!

    Here is another BS charge: $100 to pay my bank the money on my mortgage. Yup, to pay my bank back everything (not short change them), I need to pay $100, so some one can say, yup, he paid back... ARE YOU FUCKING KIDDING ME?

    I just did the math, to sell my house and buy a new one, I am looking at $27,500. That's not including movers. That is just fucking lawyers, taxes, sales people. This is fucking looney tunes!

    I think I found the fucking reason for why noone is buying fucking houses! You don't need to be a rocket scientist to fucking see this. WTF!
     
  4. 3.8TransAM

    3.8TransAM 1989 Turbo Trans AM

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    Always make sure u can pay off your mortgage at any point or refinance for nothing other than standard refinancing charges period. No penalties etc, always do that first, then worry about the rest.

    Do not buy a house in any market where the movement of said market was getting ridiculous as many were back in late 05-07 area before the fall. U buy nothing for peak, whether it be cars, houses, stocks, etc. It's always a way to get burned. Also keep in ind when buying to look at the long haul vs. short term, may be better to stay put and see how market goes if u can financially take it for a few yrs rather than lose that amount now.

    Speculators fuck up everything for us, whether artificially inflated home prices to what happens with the price of oil on a daily basis.

    Also it was not all the "banks" fault either, simple math can easily show u what u can afford house wise, flipping burgers you can't support a 300k monthly payment.(this is generalzation about when the shakeout happened)Banks lied as much as people applying for mortgages did.
     
  5. Bryan

    Bryan ΜΟΛΩΝ ΛΑΒΕ

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    Yes, home ownership is a scam. In exchange for mortgage payments you don't get a house.

    And it's not supposed to be an investment, it's supposed to be a residence...unless you're buying houses as investment properties, in which case I'm totally unsympathetic. You pays your money, you takes your chances.

    Maybe instead of not buying a house, you don't buy a $375K house, hmm?

    I bought in ATL for $152.5K. Financed 100% since the freaking banks would loan to anyone at the time. I've paid it down to about $104K out of pocket since then. It's worth maybe $90 if I was lucky, but whatevs, I have renters in it (live in someone else's house in another state due to work). They pay the mortgage, I'm maybe $100 a month underwater on operating costs, etc.

    I'm in for the long haul. I'm cautiously optimistic the market will turn around in the next 5-10 years and I'll be able to sell about the time I'm ready to buy land for a long-term retirement plan.
     
  6. Alucard77

    Alucard77 Kaon Gladiator Champion

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    Well, in 2004, the big thing was that Interest Rates were going to sky rocket because they were the lowest in history. It was all positioned as some form of investment and look how much house prices went up. In 30 years, it should be X, Y or Z.

    I didn't buy the BS then, but it feels shitty to be correct. Realistically $375 was cheap for the tri state area at the time. We actually felt we lucked out. So many people were like, how did you find a house for $375k? Wow. Keep in mind this is the tri-state area. No one was saying, you know this is the peak of the market. So there was no way to know, especially in 2004 that things would crash like this.

    As for Payments, I can make all my payments. We are one of those, put 20% down people. Never missed a payment. We can afford this. It still makes it ridiculous what has happened though, Beyond ridiculous!

    I am thinking of holding on to my house how you suggest. Only problem is that interest rates are supposed to be going back up again. Any gain I may see in 10 years (which will break me even) will be lost on the back end by the increase of interest rates. It's a catch 22. Houses are cheap, you lose your shirt on your house, then when your naked, you get raped by your agent, the bank, the government taxes for another $30K to get in your new house.

    Long term, it actually pays to buy now with the interest rates being at 3.875.

    Well, here is the thing. At the time we were thinking of Atlanta. $375K in the TriState area (NY, NJ, CT) got me a decent house in a poor neighborhood in a nice area (If that makes sense). There was no $300 or $200 alternatives at the time. Trust me, we looked. Our starting point was $300, and we went to $375, because the $375 home was pretty much drop your bags. The $300 houses needed $100 worth of work before you could move in.

    You really cannot compare Atl and NJ at all. Nothing similar about the two markets. For instance, I recall seeing a house in Atlanta for $375 that was a McMansion. 2 acres of land, 5000 square feet, top of the line appliances, etc. My house is 1700 square feet, cape on a 50x100 piece of property, the house was pretty much builders grade, and we had to replace our appliances within a year of moving in because they died.

    Also, my post is not about not being able to afford the houses. It is about:

    - Living expenses going up 50%+
    - Property decreasing by 40%
    - Selling your house and getting into another costs you $30,000 because lawyers, sellers and government taxes (I still am wondering how the government charges you taxes if you make profit on your house and still takes a tax if you lost money on a house! You cannot even write off your losses on a house, but you can on stocks. Explain that one?)

    I am just out raged by it all. It is the biggest scam in history. I see all this stuff on TV about people not buying houses, the market being soft, etc, etc, etc. They cannot figure it out. Well I think I know.

    When it doesn't cost me $30K to switch houses, then maybe I'll move. $30K to move is ridiculous.

    The rumors going around now is this:
    - Record foreclosures are about to hit the market again. This will tank the prices of houses again.
    - Interest rates are about to jump again. So the 3.875 now maybe 8%.

    We'll see.
     
  7. Bryan

    Bryan ΜΟΛΩΝ ΛΑΒΕ

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    How big is your house (sq feet), how many bedrooms / bathrooms, and how large is your family?
     
  8. UnicronHound

    UnicronHound Well-Known Member

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    My house is from 1924, but it's on 1 1/2 acres, right now it's valued at $500k, mainly because of the land. It used to be worth slightly more, also we know of someone who wants it to put a mini apartment complex here, and will pay at least $500k. He mainly wants it as he said "Because there's many Jewish families that still need a place"
     
  9. Sludge

    Sludge Forged to Fight username: Roybot

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    You realize buying a house in NY/NJ is much more expensive than buying in Georgia, right? One of the reasons I moved out of South Florida in 2003 was $150,000 in Fort Lauderdale would only buy you a 1,000 square foot crack house with bars on the windows. I moved to Charlotte, NC and $150,000 bought me a 2,000 square foot 4 bedroom house in a quiet neighborhood. My house would have cost $500,000 in South Florida at the time. Comparing what you paid in Georgia to what he paid in New Jersey is apples and oranges.
     
  10. Knightdramon

    Knightdramon Hasbro LIES to the US

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    Speaking in Euros here, but just by the numbers you can see the loss.

    Realistically speaking our house, being one of the most renovated in the entire building, which is very well managed and kept in shape, which is in an area that's not central per say but is central to many means of public transportation, doesn't have many economic immigrants etc, cost around 300.000 euros back in the day [of course all those years ago we didn't have euros].

    Selling it right now, a two bedroom two bathroom house, price would be a generous 100.000 euros. Of which about 3.000 euros go to a lawyer, and a good 10-15.000 euros go to the state just because money went in your pocket.

    So being generous I'm off 200.000 euros of it's original estimated price, and then 15.000 euros just because I sold it.
     
  11. TFW10

    TFW10 Well-Known Member

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    I was lucky, i broke even when I sold the house.
     
  12. Alucard77

    Alucard77 Kaon Gladiator Champion

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    I live in a 1700 sq foot house, 4 bed and 2 baths, there is 3 of us, hopefully 4 soon. Our bedrooms are about 10x10. I have a living room, dining room and kitchen, nothing else. I live on a 100x50 lot. So that is 0.1251 of an acre. a 10th of an acre. My total backyard is about 30x50 or 150 square feet. In Atlanta, I probably live in one of your small condos.

    Let's keep in mind that my house was also valued at $410 in 2004, which was on the way up in the market. I think in 07 it was valued at $470. Just to put things in persepective

    Thanks. Me and the wife were seriously considering North Carolina at the time. We were newly married and ALL of our extended family lives in NY. We literally couldn't afford NY so we went to NJ.

    The same 1700 sq ft house on .12 acres of land on Long Island was going for $450,000 with $12,000 a year in taxes. So we felt like we did good.

    If we could have left the family, we would probably having some brews talking about TFers at each others houses laughing at those suckers in the Tristate and South Florida area.

    Wow, that is just insane. I didn't realize that Europe was hit that hard. That is incredible. Does that have anything to do with getting the Euro. Or did your country already have the Euro at that time.

    When we were in Italy, I was speaking to the locals and they were explaining how the Euro completely screwed them over.

    The worst I heard up to this point was my poor mother in law. Her and her husband bought a retirement condo in Naples, FL for $385,000. Unfortunately he passed. She cannot afford to sell it, be it was values at $165,000. So she takes money out of her retirement savings to pay the $2,600 a month she needs to pay on it.

    Obviously at the time, they thought they would get his benifits and her benifits.

    My favorite part is how he served in the Navy for his country, paid all his taxes, did all these thing to earn a pension and SS check for him and his wife. He dies, and poof that is all gone and she gets shit in return. I know I am bitching about my dumb issues, but my heart goes out to her.
     
  13. Robogeek28

    Robogeek28 Who're you calling a geek?

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    And this is why I'll never wanna own a home again and just plan on renting for the rest of my life.
     
  14. zealottoyou

    zealottoyou Well-Known Member

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    Interesting, just bought a co-op in queens at a pretty good price (my co-work bought one in the same building in 2008 I got a least 15% off what he paid) plus the mortgage we got is pretty good too (less than 3.75). lets see how it fares in 10 years.

    I just remember that the co-op charge 1% "flip tax" when you sell your unit no matter how long you have lived there. Plus 6% to the agent and city tax, looks like I am shooting for break-even.
     
  15. Alucard77

    Alucard77 Kaon Gladiator Champion

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    I actually did the Math, you won't regret it. The only thing you miss is the tax benifit, which is a joke really.

    Not sure what your rent is, but let me break it down for you on my bills per month:

    - mortgage + taxes + insurance per month: $2,150
    - Gas: $150
    - Electrictity: $150
    - Water: $40
    - Sewage: $25

    Now depending on how far you live from work, this one maybe optional:
    - Commute: $700 (me and the wife)
    - Parking at commuter lot: $80

    So let's do the math, so I can go to work and back (not including food, cable and other bills) I am at $3300 a month! that would be roughly $39,600 in the stripped down basic of living. If you add 30% to that (what the gov't taxes), you have the minimal amount of money that I have to have my job pay me to be able to just put a shelter over my family. That is not including the need to feed them (about $1,000 a month) and clothes or whatever else.

    That is before considering:
    - I need a new heating unit within the next 5 years: Quoted $10K
    - I need to fix my back fence: Quoted $1K
    - Other things I will need for this money pit: UNKNOWN

    As a renter, if you are below $2.600 a month, you are making out! Renting is the way to go!
     
  16. TFW10

    TFW10 Well-Known Member

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    Its easier to rent, especially when something goes bad or broke.
     
  17. Scantron

    Scantron Well-Known Member

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    I don't own a house at this point but I really wish I was at a position in my life where I could be in the market to buy one. I'd love to take advantage of the low prices, and the great interest rates on loans represent a good opportunity to save some money in the long term. Plus, I'm a little sick of renting. Just can't swing it now with having to change jobs and move every couple of years, a situation which will probably last for awhile longer. I'm expecting the market to remain depressed for at least another four years though, so maybe I'll still have a chance.
     
  18. zealottoyou

    zealottoyou Well-Known Member

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    just curious how far is your commute?

    assuming $4/gallon, $700=175 gallon, assuming 25 mpg, 175 gallon = 4375 miles, and assuming 20 working days/month, 4375 miles = 218.75 miles/day, which is about 110 miles each person per day?
     
  19. transtrekkie

    transtrekkie On the level.

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    I actually have so far had the opposite experience. I bought in Nov 2009 when the market was crashing hard. I bought my place for 84k and did 20k rennovations to it. Last quote I got on the value was 125k. And here's the kicker: I had an apartment I rented several years ago. It was a one bedroom postage stamp. it was 600/month and was going to increase to 620 when I moved out. My mortgage is 650/month and that apartment could fit in my garage.
     
  20. Methos

    Methos ...Hail Megatron

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    Wow!! I'm guessing you live in some residential neighbor hood?
    Have you thought about building your own home?


    I live 15mins from Prattville out in the rural area on 5 acres with a 2408sq. ft. home that I had build three years ago. Total cost for home&land was $52,000.00, which now values at more than twice that amount.
     

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