100k price drop

[5Times]

Hi All,

I'm looking for the good points of having 100k knocked off the price of my house.. Which I just bought 18 months ago. I mean does this mean I've really lost 100k... Can you do anything about such a large drop in such a short time.. houses next door to me will be 100k cheaper..

 

[Kemo_Sabe]

two questions:

are you happy to continue living in the house?

can you comfortably afford to pay the mortgage?

if the answer is 'yes' to both, then it doesn't really matter what the market clearing price of your house is. It is not an investment and should not be thought about in those terms.

 

[Dreamerb]

I'm looking for the good points of having 100k knocked off the price of my house.. Which I just bought 18 months ago.

What's the context? If you're happily living there and able to pay the mortgage, the notional value is irrelevant - changes in value have only the effect of a feelgood or feelbad factor, depending on direction.

I mean does this mean I've really lost 100k...

Only if you're selling. Your notional net worth is less - but again, these things fluctuate according to market movements, and aren't really all that important unless you're selling the asset to crystallise a gain or a loss.

Can you do anything about such a large drop in such a short time.. houses next door to me will be 100k cheaper..

Nope.

 

[Bronte]

There is one thing you can do, try to get your mortgage down to less than the property value as quickly as possible.

 

[5Times]

I suppose everyone who bought in the last couple of years is in the same boat and when buying I did think if there was going to be "pain" we would get hit especially bad...but suppose I'll just give the place a paint and try and enjoy having a long term home nice house as opposed to when I was renting and moving around every couple of years..

I'm sort of happy that the rest of the houses hopefully will be sold.

 

[NorfBank]

Hi All,

I'm looking for the good points of having 100k knocked off the price of my house.. Which I just bought 18 months ago. I mean does this mean I've really lost 100k... Can you do anything about such a large drop in such a short time.. houses next door to me will be 100k cheaper..

Did you pay for it in cash?
Are you selling it tomorrow for 100k less than you bought it.
If the answer to both of these is yes then my friend you just have lost 100k.

If you took out a mortgage to buy the property and you cut and run tomorrow and the bank have to sell it well they just lost 100k.

If you are happy with the house then you've lost nothing in the last 18 months but gained a home. Aw.

 

[samanthajane]

I'll give you a good point it's not 120k.

purchased my house for 250k peak price was 390k now worth 270k

So you could say i've lost 120k but it was never really mine in the first place so i dont count it as having lost the money.

If you have 400k left outstanding on your mortgage and it's now worth 300k then yes you can say you have lost 100k. Ouch if that is the case, but your not the only one that is going through this.