Home price reductions impact on the New home owners

[Samajavaragamanaa]

9 hours ago, ErraBook_monagadu said:

This house purchased 2022 $830K, trying to sell since Feb $800k, not selling.

35K property taxes

50K selling costs

150K interest for 3 years

6 months vacancy cost 30K

Depreciation Atleast 50k if at all it sells

Minimum 300k big whole, no hole 

 

listed for sale

 listing removed

listed for sale

listing removed

………….perpetual loop
 

https://www.zillow.com/homedetails/5777-Tournament-Ct-Tracy-CA-95377/2063071241_zpid/

 Analysis ra lk ga

[CanadianMalodu]

13 hours ago, Sizzler said:

If this is your primary home and living there, fluctuations in equity doesn’t matter. Whether it goes up or down by 50K, nothing is realized until you want to sell or take equity etc. 

Even if you don't sell, if it's a mortgage you still pay for it and keep doing so for the total term of the mortgage.

A 50k on a bigger amount is marginal as the number doesn't make you anxious. But say a loss in equity over 10% or so will start making you nervous and a drop of 20% or so it doesn't make sense to keep the mortgage as you will be paying the price you bought it for and it doesn't reflect the "true market price" anymore; you continue to accrue high interest on the fat delta, while you keep paying it.

So in the end, a loss is a loss whether you realize it or not, just as Capital gains whether you realize it or not. Market price is still the test for asset value, primary homes aren't an exception.

[jpismahatma]

3 hours ago, Samajavaragamanaa said:

 Analysis ra lk ga

Ni analysis chepu bro.

[AnandaVivek]

Are u talking about upgrading or buying a new home in general? Assalu illu theesukovadhu ante inka US lo undatam waste. One of the perks to live here is the sense of homeownership big or small. If u are talking about upgrading your house, that need not be hurried. When in down market, u can catch a good deal. But if ur kids are going to go to middle or high school, its time for u to upgrade no matter what the conditions are. Kids enjoy big homes and families build memories there. That should be the main reason to buy or upgrade homes not kitti parties or uppara meetings

[har_D_ick]

1 hour ago, CanadianMalodu said:

Even if you don't sell, if it's a mortgage you still pay for it and keep doing so for the total term of the mortgage.

A 50k on a bigger amount is marginal as the number doesn't make you anxious. But say a loss in equity over 10% or so will start making you nervous and a drop of 20% or so it doesn't make sense to keep the mortgage as you will be paying the price you bought it for and it doesn't reflect the "true market price" anymore; you continue to accrue high interest on the fat delta, while you keep paying it.

So in the end, a loss is a loss whether you realize it or not, just as Capital gains whether you realize it or not. Market price is still the test for asset value, primary homes aren't an exception.

u can never time the market.. thats why u buy in your comfort limits.. Primary home is a home u should be happy with. 90% of times the value will appraise after 10 year span, so its matter of less profit vs more profit.  

And by the way i still dont understand why u become anxious if neighborhood home value fluctuate unless u have plans to sell near term. u already calculated ur comfort limits on mortgage and bought home . Its like u u bought a stock and crying on others u bought in dip, it doesnt matter unless u sell as it didnt changed anything u already committed to pay 

My mantra is simple . if u have cash reserve for 6 months dont stress too much to time the market.. buy what u like  and get over it, be happy 

Nenu 4 years back Frisco lo 800 ki in Lexington ante mind dibbindha ani ellipoina, now same homes are 1.5 , they will never ever go down to 800. 

Naku chala late ga artham aina fact enti ante.. People made loads of money and we are fools to think the praises will steeply fall.. 

 

[har_D_ick]

By the way evaro swathimutyam.. stess of home purchase ages your family anta.. inkem cheppali 

na real life example.. i bought a 25 acre ranch in Austin at peak time, i am very comfortable in paying mortgage and my plan was always exiting after 20 years.. Ippudu almost 20% down lo undhi but i dont really care because it will go up eventually.. should i have timed it and bought in dip ? i could but its tough to time

Ala ani i am not saying to buy what u cannot afford .. buy in ur limits and stay happy

[CanadianMalodu]

34 minutes ago, har_D_ick said:

By the way evaro swathimutyam.. stess of home purchase ages your family anta.. inkem cheppali 

na real life example.. i bought a 25 acre ranch in Austin at peak time, i am very comfortable in paying mortgage and my plan was always exiting after 20 years.. Ippudu almost 20% down lo undhi but i dont really care because it will go up eventually.. should i have timed it and bought in dip ? i could but its tough to time

Ala ani i am not saying to buy what u cannot afford .. buy in ur limits and stay happy

You seem not to care because you think, it will eventually go up. Would you still not care if you know it doesn't go up?

[ErraBook_monagadu]

58 minutes ago, har_D_ick said:

By the way evaro swathimutyam.. stess of home purchase ages your family anta.. inkem cheppali 

na real life example.. i bought a 25 acre ranch in Austin at peak time, i am very comfortable in paying mortgage and my plan was always exiting after 20 years.. Ippudu almost 20% down lo undhi but i dont really care because it will go up eventually.. should i have timed it and bought in dip ? i could but its tough to time

Ala ani i am not saying to buy what u cannot afford .. buy in ur limits and stay happy

Ni davada lo Austin experience ki edo manhattan lo konattu lessons cheptunavu?

 

[Bulls_Rose]

16 hours ago, ErraBook_monagadu said:

This house purchased 2022 $830K, trying to sell since Feb $800k, not selling.

35K property taxes

50K selling costs

150K interest for 3 years

6 months vacancy cost 30K

Depreciation Atleast 50k if at all it sells

Minimum 300k big whole, no hole 

 

listed for sale

 listing removed

listed for sale

listing removed

………….perpetual loop
 

https://www.zillow.com/homedetails/5777-Tournament-Ct-Tracy-CA-95377/2063071241_zpid/

50k lot premimun asugutinadubuilder 

4 sides Homes unaa lot ki 

Meeru emo illi ammudupovatala antunaru 

[har_D_ick]

1 hour ago, ErraBook_monagadu said:

Ni davada lo Austin experience ki edo manhattan lo konattu lessons cheptunavu?

 

ne davada lo bekar bathukii 30 k ki akkada ikkada aithaunav nekendhuku ra pedha pedha matalu

[har_D_ick]

1 hour ago, CanadianMalodu said:

You seem not to care because you think, it will eventually go up. Would you still not care if you know it doesn't go up?

thats usual thinking that in long term it will go up . but risk is always there.  my point is sometimes we loose opportunities waiting to time the market.. mana budget lo manam unte , it wont be issue at all

[har_D_ick]

Also i cannot afford in Manhattan so i didnt buy .. its that simple

[perugu_vada]

Uncle mangoes free ga ivochu kada to motivate them 

[ErraBook_monagadu]

Austin is the armpit of America. 
disqualified from re conversation.

[Sizzler]

5 hours ago, CanadianMalodu said:

Even if you don't sell, if it's a mortgage you still pay for it and keep doing so for the total term of the mortgage.

A 50k on a bigger amount is marginal as the number doesn't make you anxious. But say a loss in equity over 10% or so will start making you nervous and a drop of 20% or so it doesn't make sense to keep the mortgage as you will be paying the price you bought it for and it doesn't reflect the "true market price" anymore; you continue to accrue high interest on the fat delta, while you keep paying it.

So in the end, a loss is a loss whether you realize it or not, just as Capital gains whether you realize it or not. Market price is still the test for asset value, primary homes aren't an exception.

You will be anxious with price drops and happy with price going up but that won’t change what you are paying for the home if this is your primary residence. 10% dips are common during recession times. Hot markets are where the dips will be higher just like how they go boom when economy is good.