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Old 09-20-2011, 05:53 PM   #21
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How about these folks?
There are lots of people in that category in California, I agree, and there are plenty of cliffs around Hollywood as well. Even here, where the cost of housing is relatively low, I know a few with multimillion dollar homes that are preventing them from proceeding with their plans for downsizing, moving, and so on. This geographically widespread, long term housing slump is not comparable to prior localized downturns IMO, and the misery it is causing is really rotten. Breaks my heart.
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Old 09-20-2011, 09:53 PM   #22
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O.K, I checked out the link provided by rescueme. Apparently, our house isn't for sale.
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Old 09-20-2011, 11:46 PM   #23
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That's close to where we escaped from in 2008!

The new buyers have a property tax bill of $14,000 a year, and have lost over $200K in value, according to Zillow... <not sure what Smilie to use for that one...>
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Old 09-23-2011, 05:45 AM   #24
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Originally Posted by SteveR

I still remember the adage....buy the most house you can afford..
When I purchased my current home in '07, I followed it but not in the way my realtor expected. On paper, I could afford more but not according to my FIRE plan.

It does break my heart when I see so many people either losing their homes, being underwater and walking away from their homes, or just having no equity for a retirement cushion.
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Old 09-23-2011, 07:57 AM   #25
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The way I look at it is we made a ton of money on our previous three homes, and are currently in a home that's valued at about $500K less than what we built it for, so we're pretty much back to even. Luckily we love where we are and don't plan on going anywhere for quite a while. I suspect if we stay for another 10 years the market might recover about half of the current loss, which would make a sale a little less painful. If this was money I depended on for my retirement I'd be wailing and gnashing my teeth. But I never counted my home as a retirement asset, although if we ever do move we'll downsize significantly and add the remainder to the retirement funds. In the meantime, at least we see our family and friends pretty often. Everybody loves to visit you when you live at the beach.
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Old 09-23-2011, 04:38 PM   #26
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My experience here in California pretty much parallels Harley's.

In 1983, bought a nice home in San Jose, CA and lived in it for a decade. After I was laid off ( first time ever ) in 2002, we decided to look for a place with a cheaper COL, so we went North.

Bought a slightly larger home for about 2/3 of what we sold our old home for. This one proceeded to rise as well, to a high of about $620K just before the collapse. It's now worth a little less than half of that figure.

If I sell the house at today's price, I lose all the previous home gain, plus about another $10,000 more. Pretty dismal situation, as I have now formally retired and want to downsize. Hope things improve soon, even a little - I'll happily take it.
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Old 09-23-2011, 04:46 PM   #27
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I appreciate the honesty of this forum. We've all been through a lot the last few years. Thanks to the people here I see that expenses are probably as important as assets to FI and ER. To paraphase in football terms, we need to balance the offense (income and assets) and defense (expenses). Offense wins games and defense wins championships.
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Old 09-23-2011, 06:25 PM   #28
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Cue the TWILIGHT ZONE music. DOOH-doooh-DOOH-doooh, DOOH-doooh-DOOH-doooh. If I click twice on the "negative" button (zoom out) the map encompasses the house where my grandmother lived out the last 15 years of her life - just where the Ventura and Hollywood Freeways intersect. She really thought she had arrived (see next paragraph).

Since she died (about) 1968, she would have been quite surprised at the current half million dollar price tags in the neighborhood - even if they have dropped from a million! When she was born (about 1890) in Kentucky coal country, the term "Millionaire" meant something. It was probably like the term "Billionaire" today. Something not achievable by anyone she would ever know or even associate with in her lifetime. Now, millionaires are "dime a dozen".
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Old 09-24-2011, 07:03 PM   #29
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Will $1 Million be enough to retire 20-30 years from now?
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Old 09-24-2011, 07:09 PM   #30
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Will $1 Million be enough to retire 20-30 years from now?
Isn't that like asking "how high is up"?
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Old 09-25-2011, 01:33 AM   #31
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Isn't that like asking "how high is up"?
What do you mean? Do you think inflation rate will be the same too? How about USD value?
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Old 09-25-2011, 05:38 AM   #32
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What do you mean? Do you think inflation rate will be the same too? How about USD value?
To put it into perspective, here is an article from a Brit newspaper:
Viv Nicholson, now 75, won 152,319 the equivalent of 5 million today 50 years ago this week.
That's ~3% in today's terms.
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Old 09-27-2011, 06:31 PM   #33
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What about $1 Billion?
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