Quote:
Originally Posted by DionPlett
I've been wondering about real estate values myself the last little while. When I bought my house in 2007 it had increased in value 150k from the time it was built in 2005. I'm wondering if I shouldn't sell it because I actually think that the value could drop by pretty close to that same 150k.
I also have more than 40k in consumer debt but I could sell my house and be debt free but you still have to live somewhere. It's a bit of a dilema right now for me but I think that once you get to a certain stage in your life, have a house and vehicle, you're going to have debt at some time.
The recession effected me quite a bit as far as my income goes. How common is it for people to sell out and become debt free and basically start over again.
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Well it depends on a couple of things. If your personal debts are at a point where you can not keep up the payments than you are living beyond your means. In that case maybe you should consider downsizing your house and using the proceeds to clear off your debts. Depending on your personal situation and what type of place you need, for example do you have kids, pets?
The way your post is worded it sounds like you bought it for the 2005 price and when you moved in the value of the house had gone up by 150k. So if your house did drop in value by $150k than you wouldn't be in a negative equity situation. So long as your mortgage payment is similar to what your rent would be and you're not at risk of being in a negative equity situation I don't think you're too badly off.