dex
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 28, 2003
- Messages
- 5,105
I track my net worth at year end, and, with and without an estimate for home net home value (after selling expenses). I just found out that there is a home, similar to mine, posted with a net selling price 25% lower than what I paid for my home. I don't know why it is so low - there are smaller homes for sale for not much less. I'm guessing it is desperation. However, this will be difficult to overcome when comps are used.
I find it helpful, in times like this to play mind games. The first one is the living cost one. I bought a home in 1999 and sold it for what I paid for my current home. Now my current home is worth 20K less than the purchase price of my 1999 home.
First mind game - housing cost per year ($20K/11 years) $1,818/yr + opportunity cost + maintenance + taxes + ins. = Rental cost? I say it is close.
Second mind game - total net worth. I'm estimating my total 2010 year end net worth at 2.7% lower than my total 2006 net worth (1st year of ER - house at Gross purchase price ).
Looking at a 2.7% loss over 4 years is easier than thinking about a 25% housing price loss.
I find it helpful, in times like this to play mind games. The first one is the living cost one. I bought a home in 1999 and sold it for what I paid for my current home. Now my current home is worth 20K less than the purchase price of my 1999 home.
First mind game - housing cost per year ($20K/11 years) $1,818/yr + opportunity cost + maintenance + taxes + ins. = Rental cost? I say it is close.
Second mind game - total net worth. I'm estimating my total 2010 year end net worth at 2.7% lower than my total 2006 net worth (1st year of ER - house at Gross purchase price ).
Looking at a 2.7% loss over 4 years is easier than thinking about a 25% housing price loss.