Should current homeowners wish for home values to decline?

[Anonymous]

Yes I own and hope prices come down. High prices keep people trapped and limit our ability to move for better jobs or other life reasons.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I do wish they would decline. My wife and I were discussing how none of our young friends (responsible professionals) are finding it possible to afford a house. My 9-year-old daughter asked for more info, and my wife explained that housing prices have gone up much faster than wages over the last 10 years. And that we wouldn't have been able to afford our own house under these circumstances.

My daughter said, "What will happen to us (her and her siblings), then?"

What indeed?

DH and I live below our means (except for private school) to be able to buy each of our 4 kids a decent house in NW DC. We buy and rent so the rent pays for the mortgage. We have been lucky so far, but I do worry about rents decreasing/unemployment increasing…

Yes, agree, this is more or less what we told her. We have 4 kids, too, and 1 on the way. I don't know that we'll be in quite as good a position as you are, but we'll be able to help substantially.

[Anonymous]

Anonymous wrote:

OP it's not unique to the US. I recently sold a property that I inherited in a very poor country in Africa. I was expecting maybe $100k and I sold it for $500k. We are talking about a country with a GDP per Capita less than $1000. Of course I was happy. I am even more happy that I sold it now because it's clearly a bible waiting to beust, but then people over there told me the increase in property values has been constant for the last 20 years.

We will simply reach a point where wages won't be able to keep.up and only a fraction will be able to buy. When we get to that point what will happen to home values then? I don't know.

In the context of get US assuming immigration is severely restricted, low birth rates consist and aging accelerate, in that scenario can we still expect home values to keep rising? Again I don't know

One thing is clear every single homeowner wants endless increase me included lol.

I think you answered your own question. Major political change due to economic stresses. We are already seeing it. Dollar is being devalued. Markets collapse. Your home relative to the strength of the dollar will weaken as an asset. But hopefully you view it as a place to live and not an appreciating asset. When you consider taxes, insurance, and maintenance it's not really a great "investment" anyway unless you get lucky with your location improving or something like that.

+1. Well said. I always tell anyone who wants to buy a house to look at as a shelter first and foremost.

[Anonymous]

Anonymous wrote:

OP it's not unique to the US. I recently sold a property that I inherited in a very poor country in Africa. I was expecting maybe $100k and I sold it for $500k. We are talking about a country with a GDP per Capita less than $1000. Of course I was happy. I am even more happy that I sold it now because it's clearly a bible waiting to beust, but then people over there told me the increase in property values has been constant for the last 20 years.

We will simply reach a point where wages won't be able to keep.up and only a fraction will be able to buy. When we get to that point what will happen to home values then? I don't know.

In the context of get US assuming immigration is severely restricted, low birth rates consist and aging accelerate, in that scenario can we still expect home values to keep rising? Again I don't know

One thing is clear every single homeowner wants endless increase me included lol.

I think you answered your own question. Major political change due to economic stresses. We are already seeing it. Dollar is ourbeing devalued. Markets collapse. Your home relative to the strength of the dollar will weaken as an asset. But hopefully you view it as a place to live and not an appreciating asset. When you consider taxes, insurance, and maintenance it's not really a great "investment" anyway unless you get lucky with your location improving or something like that.

Exactly this! That is why when I retire and pay off my home I’ll be putting the 2M in the bank and become a renter in the same neighborhood. Or, I’ll be given my children the money to purchase their move up home. I’ll still have enough retirement to cover living expenses and health

[Anonymous]

I only hope to be able to keep our jobs and continue to pay the mortgage. In addition to the gutting of the federal government and contractors, the instability of the lunatic in the white house is causing clawing back in other industries, as well.

[Anonymous]

Anonymous wrote:


I think you answered your own question. Major political change due to economic stresses. We are already seeing it. Dollar is ourbeing devalued. Markets collapse. Your home relative to the strength of the dollar will weaken as an asset. But hopefully you view it as a place to live and not an appreciating asset. When you consider taxes, insurance, and maintenance it's not really a great "investment" anyway unless you get lucky with your location improving or something like that.

Exactly this! That is why when I retire and pay off my home I’ll be putting the [b]2M in the bank and become a renter in the same neighborhood. [/b]Or, I’ll be given my children the money to purchase their move up home. I’ll still have enough retirement to cover living expenses and health

How old will you be when you retire? How many more years do you think you might live? It could be 30 or more. Here's the thing. When the dollar is devalued (it has been devalued 10% since Trump took office) and your bank is paying very little interest, your 2M might not look like such a great amount (especially if you give some of the money to your children for their move up home as well). Your money will be worth less as time goes on. But if you keep your home and enjoy it, you won't have to worry about rent increases and you will likely have a nicer place than the "rental". Plus your children can inherit a real home and we all need shelter. It's real estate (you know, something real). So it can be important to have that as part of your wealth. Your rent could well be more than the taxes, insurance and maintenance costs on your house and you don't know if your $2M in the bank will keep up with your costs anyway. Personally I plan to keep up my house because it's a very comfortable place (garage and parking steps from my door, beautiful yard to maintain privacy from neighbors) and I feel like quality of life is worth a lot as you age. Then again, my house is not worth $2M. It's probably half that, but it's a nice place and the right size.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I do wish they would decline. My wife and I were discussing how none of our young friends (responsible professionals) are finding it possible to afford a house. My 9-year-old daughter asked for more info, and my wife explained that housing prices have gone up much faster than wages over the last 10 years. And that we wouldn't have been able to afford our own house under these circumstances.

My daughter said, "What will happen to us (her and her siblings), then?"

What indeed?

DH and I live below our means (except for private school) to be able to buy each of our 4 kids a decent house in NW DC. We buy and rent so the rent pays for the mortgage. We have been lucky so far, but I do worry about rents decreasing/unemployment increasing…

Yes, agree, this is more or less what we told her. We have 4 kids, too, and 1 on the way. I don't know that we'll be in quite as good a position as you are, but we'll be able to help substantially.

Sorry, I meant to say we have 3 kids. Helping 5 kids with buying a house is a lot!

[Anonymous]

I hope not. I finally got into the housing ladder and I’d like to climb it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:


I think you answered your own question. Major political change due to economic stresses. We are already seeing it. Dollar is ourbeing devalued. Markets collapse. Your home relative to the strength of the dollar will weaken as an asset. But hopefully you view it as a place to live and not an appreciating asset. When you consider taxes, insurance, and maintenance it's not really a great "investment" anyway unless you get lucky with your location improving or something like that.

Exactly this! That is why when I retire and pay off my home I’ll be putting the [b]2M in the bank and become a renter in the same neighborhood. [/b]Or, I’ll be given my children the money to purchase their move up home. I’ll still have enough retirement to cover living expenses and health

How old will you be when you retire? How many more years do you think you might live? It could be 30 or more. Here's the thing. When the dollar is devalued (it has been devalued 10% since Trump took office) and your bank is paying very little interest, your 2M might not look like such a great amount (especially if you give some of the money to your children for their move up home as well). Your money will be worth less as time goes on. But if you keep your home and enjoy it, you won't have to worry about rent increases and you will likely have a nicer place than the "rental". Plus your children can inherit a real home and we all need shelter. It's real estate (you know, something real). So it can be important to have that as part of your wealth. Your rent could well be more than the taxes, insurance and maintenance costs on your house and you don't know if your $2M in the bank will keep up with your costs anyway. Personally I plan to keep up my house because it's a very comfortable place (garage and parking steps from my door, beautiful yard to maintain privacy from neighbors) and I feel like quality of life is worth a lot as you age. Then again, my house is not worth $2M. It's probably half that, but it's a nice place and the right size.

Honestly, after working my ass off to pay off my mortgage I hate the idea that the tax man will still be harassing me. I will also not want the cost of maintaining my home - yard, AC, plumbing and electrical stuff that I do currently. I want to be free and I think renting is the better option in that regard.

[Anonymous]

My assesment taxes are going too high in the next cycle. I am considering to sell in near future and move to a cheaper place. I don't need this much space.

[Anonymous]

Anonymous wrote:


How old will you be when you retire? How many more years do you think you might live? It could be 30 or more. Here's the thing. When the dollar is devalued (it has been devalued 10% since Trump took office) and your bank is paying very little interest, your 2M might not look like such a great amount (especially if you give some of the money to your children for their move up home as well). Your money will be worth less as time goes on. But if you keep your home and enjoy it, you won't have to worry about rent increases and you will likely have a nicer place than the "rental". Plus your children can inherit a real home and we all need shelter. It's real estate (you know, something real). So it can be important to have that as part of your wealth. Your rent could well be more than the taxes, insurance and maintenance costs on your house and you don't know if your $2M in the bank will keep up with your costs anyway. Personally I plan to keep up my house because it's a very comfortable place (garage and parking steps from my door, beautiful yard to maintain privacy from neighbors) and I feel like quality of life is worth a lot as you age. Then again, my house is not worth $2M. It's probably half that, but it's a nice place and the right size.



Honestly, after working my ass off to pay off my mortgage I hate the idea that the tax man will still be harassing me. I will also not want the cost of maintaining my home - yard, AC, plumbing and electrical stuff that I do currently. I want to be free and I think renting is the better option in that regard.

Well, you will be paying for taxes and utilities through your rent and you will have to depend on a landlord to do the maintenance (which may or may not be done in a quality fashion). Have you ever rented? We rented for years and love owning. You are never free of taxes no matter where you live. If you move out to low tax land, you might be unhappy with the quality of your services, but maybe not.

[Anonymous]

^ Instead of having the tax man "harass" you, you will be forced to harass the landlord in order to get things done. Ask me how I know.

[Anonymous]

Anonymous wrote:
^ Instead of having the tax man "harass" you, you will be forced to harass the landlord in order to get things done. Ask me how I know.

That said, renters have peace of mind that they do not have to deal with maintenance. If you don't own the property, you start to not care that much about that home maintenance. As a renter, I routinely let things linger.

[Anonymous]

It is pretty affordable in the exurbs.

[Anonymous]

Anonymous wrote:

^ Instead of having the tax man "harass" you, you will be forced to harass the landlord in order to get things done. Ask me how I know.


That said, renters have peace of mind that they do not have to deal with maintenance. If you don't own the property, you start to not care that much about that home maintenance. As a renter, I routinely let things linger.

That's not me. I like to live in a nice place. I also don't like to be at the mercy of someone else for things.