…. that you should make money on a house after three years? Where is the law written that you buy a house and the house HAS to make you money? I was reading a USAToday article in the hospital cafeteria which highlighted a number of people whose homes where now ‘underwater’ – worth less than the mortgage. For almost all those who were featured there was a common denominator – they bought their house EXPECTING to turn it around in 3, 4 years and make a PROFIT. And now, because of the economy and market, they cannot sell.
I think one of the bubbles that recessions and economic downturns burst is the one that says buying a house should make you a quick buck.
Bricks and mortar is an investment. My grandfather bought a house in London in the 1950’s for $16,000. In 1988, when he died, it was sold for $400,000. A wonderful ‘inheritance’ for the family and a great investment. But notice, he lived in it for 30 years. He raised a family in it.
The greed of global economy which says you SHOULD be able to buy and sell a house over a short period of time to make money is so arrogant. What about buying a house to live in it 30 years and making it an investment for your children. I know that work patterns have changed. Job security is a thing of the pass and so people are moving more frequently, and not just locally, but within State, out of State and cross country. But the way those interviewed for the article were being reported, they sounded almost bitter that their right to make money off the house had not happened.
I do know there are many people who have lost homes through no fault of theirs; that many have struggled in this current climate – I am not trying to minimize the problems that exist. But for many people out there, how about being radical. Quit day-dreaming about how much you might make on a house in the shortest possible time period and instead settle down for the long term – 10, 15, 20 or 30 years. The likelihood is that the equity will return over the long-term (USAToday says in 2015-2020).