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Will the economy ever make a come back?!

Real estate and stocks have this in common....most of the time you are talking about an unrealized loss. You've only "lost" money in the stock market when your shares are worth less than you paid for them AND you sell them. If you paid $3,000 for shares and once upon a time they were worth $10,000 and now they are worth $4,000 that is not a "loss". If you paid $3,000 and got out because the value dropped to $2,000 THAT is a loss.

The same is true for the "value" of your house. What it currently appraises at really only matters if you sell it right now. If you have been paying $1,000 a month on your $200,000 mortgage and your house was REALLY worth $200K in a realistic market you have only "lost" money on your house if you sell it. If you love your house, can still pay your $1,000 mortgage then life is still good. Stop worrying about its "worth" until you need to. If you were planning to keep it another 10, 15 or 20 years it really doesn't matter what it's "worth" right now.

IMO :)
 
steve said:
:hides: Ummmmm, we talked to one realtor so far, she expected in the 700K's for us. :hides: More to talk to. This is a fantastic school district we are in here...that's why prices are so good for us, plus interest rates are low, and people that are looking to buy, see all the families out playing,....bingo!

Kind of bitter/sweet for us tho. Dh's father is not well at all, and that is the reason for us to move. Can't keep both places going.
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Come on now, is this some sort of CW April Fools Day joke? :tap: :sheep1:

The least you could do is show us some pics of this goldmine you're living in.
 
eiramnoaj said:
Come on now, is this some sort of CW April Fools Day joke? :tap: :sheep1:

The least you could do is show us some pics of this goldmine you're living in.
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I remember him posting a couple of pics of work they've done. It's STUNNING...totally gorgeous. Virtual tour please Steve!!!!
 
icoupon2 said:
I remember him posting a couple of pics of work they've done. It's STUNNING...totally gorgeous. Virtual tour please Steve!!!!
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Me too - I think we've seen parts of the kitchen and dining room. I definitely want to see a virtual tour of that place!
 
mrsmom said:
Pretty much anywhere you would have bought would be upside down. We bought in 2000..........paid $87k and it's now "worth" $66k. I don't think $87k was too inflated for our house at that time. :9:
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Did you have it appraised or are you talking about your tax "assessment" of its value...

An assessment is based on the structure, the lot size etc. the appraisal is based on those things but also on improvements etc. They are rarely the same number.
 
skincarekathy said:
I typed some stuff and erased it.

The short answer is, no, the economy cannot bounce back without redenominating our currency. Our deficit has outpaced our annual GDP - if every dollar everyone makes in the country was taken in tax it would not pay what we owe. We our outborrowing our earning power and have been doing so for about 40 years, sooner or later the party will implode.
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so (and I know no one can tell the future) would you say you think those buying right now are making the wrong move?
 
eiramnoaj said:
Unless they overpaid back then, it should definitely be worth more than what they paid.

My family bought this house in the 70's for around $35k. It's now worth at least 10 times that amount. Granted if I sold it I wouldn't be able to buy much better in this area but if I were retiring it would get me lots of house in less expensive areas.
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lf5058 said:
In our county, the tax assessment value is about 1/3 of the apraised value of the house.
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Well in Illinois, typically outside crook county, the assessment is 1/3 of govt "appraisal" of "market" value. I'm guessing where you are they do not go pay for an actual appraisal when they assess you, its their (govt) "appraisal" of market value?
 
KG said:
so (and I know no one can tell the future) would you say you think those buying right now are making the wrong move?
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I don't...(even though you weren't asking me). Even if the real estate prices never get back up to there overinflated "highs" a lot of people who couldn't "afford" to buy can now. And a lot of people are getting a whole lot more house for their money. If you are smart about it (IMO) don't buy the biggest McMansion in the worst neighborhood....search out neighborhoods that still have a good ratio of occupied vs. unoccupied houses.

The market had to right size itself eventually...buying low and selling high is still the best strategy. And if your are buying with care now while prices are rock bottom you will eventually come out ahead of the game.
 
chgobob33 said:
Well in Illinois, typically outside crook county, the assessment is 1/3 of govt "appraisal" of "market" value. I'm guessing where you are they do not go pay for an actual appraisal when they assess you, its their (govt) "appraisal" of market value?
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We paid an actual appraiser to do an appraisal based on comparative market analysis and used that to protest the tax assessment.

I heard in some crooked counties, they would not entertain this kind of protests unless you spend the money to hire a lawyer.
 
eiramnoaj said:
Come on now, is this some sort of CW April Fools Day joke? :tap: :sheep1:

The least you could do is show us some pics of this goldmine you're living in.
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Joan, living in the Chicago area all my life and living roughly in Steve's area of the city for 15+ years 700k's is not out of range for a single family home by any means. If he was 1.5 mile southeast a modest single family would typically be close to $1 million. I only have a 2 bedroom condo that even now would be somewhere between 230-270k but that's much much less than I paid in 2005. :(

Just shocking seeing the prices in outlying areas for houses in Illinois (<100k). My building's studios with relatively dirt cheap $340/mo assessments still are selling for close to 100k down from 150k+ at the peak.

But yes, I'd like to see pictures :drool:
 
lf5058 said:
We paid an actual appraiser to do an appraisal based on comparative market analysis and used that to protest the tax assessment.

I heard in some crooked counties, they would not entertain this kind of protests unless you spend the money to hire a lawyer.
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I know my folks and my condo association (DuPage and Cook) have to do that all the time including hiring lawyers. The govt employees do not fairly value properties in many cases and do not do real appraisals.
 
chgobob33 said:
Just shocking seeing the prices in outlying areas for houses in Illinois (<100k). My building's studios with relatively dirt cheap $340/mo assessments still are selling for close to 100k down from 150k+ at the peak.
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I agree--I keep reading stuff like this and thinking about whether I would ever be able to be happy living outside a major city. Our one bedroom condo appraised for about 170k recently--unfortunately for me, my standard has always been a gay dance club, the ability to order Thai food in the middle of the night and a major opera company so I may never get the <100k home. Interestingly, Salt Lake City meets all three standards but still, well no I don't think so...:lol:
 
KG said:
Your friend does suck, but I think that of anyone who sells out their friends for money, whether the suction pump is a life insurance salesman, Pampered Chef rep, CandleParty/tupperware/MaryKay/WickerBasket peep or a house refi pressure :quotes:friend:quotes:.
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It always amazes me when people are taken advantage of financially by family and friends. The two absolute worst mortgages I have ever seen were brokered through family members. One of them the NON-INTEREST costs of the loan were actually around 28%. The mortgage was arranged by the borrowers brother-in-law.
 
slpeters19 said:
I agree--I keep reading stuff like this and thinking about whether I would ever be able to be happy living outside a major city. Our one bedroom condo appraised for about 170k recently--unfortunately for me, my standard has always been a gay dance club, the ability to order Thai food in the middle of the night and a major opera company so I may never get the <100k home. Interestingly, Salt Lake City meets all three standards but still, well no I don't think so...:lol:
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:ha:
 
I have no HELOC at all and my home is still worth 35,000 less now than what I paid for it 8 yrs. ago....But I was naive and thought that I HAD to own..now I wish I would have just kept renting! I could live anywhere I wanted now if I had done that...
 
The economy getting better seems to be taking much longer than "reported". Personally, I think many more things will crash before it will get better. number 1 being the dollar. Not meaning the next thing... meaning once the dollar crashes, things will get better. unsure how many things will crash before but the dollar will... IMO
 
skincarekathy said:
It is my opinion that a private home should not be seen as an investment vehicle.
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diversify has always been the answer to investment... but do you think now's the right time to buy a home? or should someone rent if they have the option to buy?
 
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