Do you own a house/condo?

We were extremely lucky and had the former owners had a bit more sense, most of that increase should have been theirs… but around the capitol here, prices have been rising like mad and only now do they seem to level out somewhat.
Good for all those who borrowed money and it sucks for those that attempted to save up for the downpayment - it’s hard to outsave that kind of increases.

Here’s the problem: if you are ever forced to sell for a career move or other reason, how do you know that you’re going to get another buyer to pay you the full amount you financed? You could well be under water. $100K in a year is bubblelicious but the supply of gum is running low…

So, let’s hear yer story. Buy or rent? Smartass or smartass?

I know because I did my research.
The house was seriously undervalued and the realtor was in a hurry to get rid of it and move on - when we bought it was a sellers market, which our sellers just didn’t understand to take advantage of. For their realtor it would give her better earnings to move a lot of houses quickly rather than try and push us to pay 20-50K more (exactly as Freakonomics talks about). I’ll spare the exact details, but we were lucky, when we finally found that house… every other had been out of our pricerange or moved out in a bidding war…
Their loss - our gain.

We’ll only get hit finacially if we have to sell the house fast due to a move. But if we buy a house in the same range or slightly more expensive we can afford both for up to a year, before it’ll really start to hurt (but that worst case scenario would of course cost us money we’d rather use for other stuff).

Sold our house, paid off all our debt. Now renting. I didn’t want to be shackled to a half-mil-plus mortgage. But with leftover cash we bought a duplex in Idaho for investment.

How does that work?
(I’m curious)
Over here you can sell your house tax free if you have lived in it for a time (a few months is enough, but you have to actually live there) otherwise your profit has to be declared as income and with our income taxes, that would cost you 40-60%.
Which of course still would be crazy money with the prices we’ve seen the last couple of years.

I believe there’s an exemption where the money from a house sale is tax-free as long as it’s put towards the purchase of a new house within a certain time period.

I think in the US you have to live in it for > 2 years to avoid tax. Otherwise, if you roll it over into another home, you still don’t have to pay any tax.

The second poll choice was made for me:

SoCal, Age22, a little over 30K a year, and a home-owner. (Condo)
I’ve never rented. Went from living at home to home-owning via a liar loan.

Actually both my parents work for a Mortgage company and have a shitload of connections and I’m not living alone.

My fiance bought the house before she met me. He he he.

Oh ho. Jason has a sugar mama!

Unfortunately when we get married in the next couple months I’ll have to start coughing up half the mortgage, and pay extra to even out our equity to be 50/50. Sob.

Well, not unfortunately, I want to get married, but you know what I mean.

True, except that you didn’t actually make money, you just got permission to borrow more. If you’d bought the house and sold it for $100K more, that would be profit. What you did just puts you $100K deeper in debt. Consolidating higher interest loans into a mortgage is smart, but it sounds like you just spent the rest of it.

How much equity do you actually have in the house? It would be hard to outsave a real increase of $100K, but from the sounds of it your net worth has actually gone down. It’s not hard to outsave negative growth.

So now your bubble is global? Denmark is not part of the U.S. Housing market.

Guess you need to read up on RE in Europe.

I’m sure that’s it.

Don’t blame your ignorance and unwillingness to do something about it on me.

Yeah, because just like every city in the US is alike and every market the same, Europe is just one big bubble…

Your lady pays your rent? LORFS Does she rent out your balls to you too? JK

by outsave I mean the “sensible” people trying to save up money for the downpayment as prices skyrocketed, because they din’t want to borrow more than 80%.
Here you can borrow 80% in long term low interest loans or variable interest loans and the like - if you need to borrow more, it’s regular bank loans at whatever interest you can get them at - we borrowed 80% of the price at 4% interest over 30 years and the rest at close to 7% over 20. But had it not been for some prior debt, that 100K increase could almost convet the expensive loan to another 4% loan leaving us with the 20% as equity.

People making enough to save up the same kind of money in that time would be looking at mansions, not a small house like ours.

Of course my point is moot, if the prices actually go down… then the savers get to have the last laugh. I won’t loose my house, but some will.
But prices are still rising, just very slow - or at normal conservative rates as the experts call it. And with those prices and because of the improvements some of the money from the converted loan paid, my house is valued about 30K higher, should I choose to refinance again.
And because of the rise in interest my 4% loan now is at a rate of 107 - I think - but I bought it at 97, so that would give me about 17K extra, when converted into a 6% loan - but as long as I don’t need the money, don’t think interest will drop and intend to stay in the house, it would be stupid to convert and pay the extra 2%.