People who bought a great house with low interest and

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you think it feels? Double the taxes, double the insurance, double the cost to invite a repair person out.
Was I supposed to say I'm happy? I don't plan to sell for a long time.

+1. You don’t realize the gain until you sell. If you are smart, you stay in the house until you die and then your kids benefit.

Your property taxes doubled in how many years and your insurance double? Is your house next to a river on a cliff? Unless you bought 30 years ago none of this is true and if you bought 30 years ago you’re probably paying a $3K PITI for a big colonial in Chevy chase, so…

Yes it did double! I'm not in DC but am in a hurricane zone. I also own a ski property in CO that I have a difficult time insuring due to the entire state being in designated as a fire zone. It's likely some of that cost will be passed onto renters, but obviously not all of it.

[Anonymous]

Mine tripled! I bought in a neighborhood no one would live in back in the early oughts and put sweat equity in over the years. Refi'd to lowest rate ever and am now watching people pay crazy prices to live here. I do like that it is mostly young families it gives the neighborhood a different, more lively vibe (was a lot of old people when I bought, and now I am the old curmudgeon on the block haha).

[Anonymous]

Built new for $2m 7 years ago and is now worth $5m. Happily paying mortgage at a rate below 3%.
Bought a rental right before pandemic for $500k and is now worth 700k+.
Not going to sell either in the foreseeable future.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:18 years ago I bought a starter home at 6% interest but it doubled in value when I sold it 10 years later. I used the proceeds to pay off all of our student loans and put a big down payment on another house in the suburbs. I got a 2.875% interest rate for 15 years and have been paying extra so I’m almost done with my mortgage. Somehow I’m a lowly federal employee sitting on a $1.8 million house in Chevy Chase nearly fully paid off. It feels great, and I’m sure no one knows when I take the metro downtown with my brown bag lunch like the average schmo. Lots of luck.

It troubles me that our federal employees have so little financial sense.

NP. What are you referring to? That they could have kept the % for 15 (or even have gone for 30) and invested the extra payment money in the markets to make more?

If so, not everyone is comfortable investing in stocks and/or bonds. I think he/she has done great.

I’m getting 5% on a money market account right now.

[Anonymous]

A house is a place to live. I don't understand the obsession on this forum with your primary residence as an investment. Likely real estate transaction costs, upkeep, and mortgage interest significantly eat into any appreciation in value. You choose a place that meets your needs that you can afford. If it goes up great. You never see posts asking how does it feel for your 401k to triple in 15 years.

[Anonymous]

It hasn’t doubled yet but it’s allegedly increased by 30%

It feels nice. The day after closing I had a little bit of buyer’s remorse just because it was such a large purchase but I like my house and I’m happy that it’s steadily appreciating.

I moved away from the city and I would like to be closer in, at times but I’m never selling this house.

[Anonymous]

Anonymous wrote:A house is a place to live. I don't understand the obsession on this forum with your primary residence as an investment. Likely real estate transaction costs, upkeep, and mortgage interest significantly eat into any appreciation in value. You choose a place that meets your needs that you can afford. If it goes up great. You never see posts asking how does it feel for your 401k to triple in 15 years.

I actually do see posts like that but on Reddit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:18 years ago I bought a starter home at 6% interest but it doubled in value when I sold it 10 years later. I used the proceeds to pay off all of our student loans and put a big down payment on another house in the suburbs. I got a 2.875% interest rate for 15 years and have been paying extra so I’m almost done with my mortgage. Somehow I’m a lowly federal employee sitting on a $1.8 million house in Chevy Chase nearly fully paid off. It feels great, and I’m sure no one knows when I take the metro downtown with my brown bag lunch like the average schmo. Lots of luck.

It troubles me that our federal employees have so little financial sense.

NP. What are you referring to? That they could have kept the % for 15 (or even have gone for 30) and invested the extra payment money in the markets to make more?

If so, not everyone is comfortable investing in stocks and/or bonds. I think he/she has done great.

I think PP was referring to the foolishness of paying extra on a 2.875% mortgage.

Is it foolish to pay extra on a 3% mortgage?

At what percentage is it not foolish?

[Anonymous]

Anonymous wrote:

Anonymous wrote:watched their property value double...how does that feeeel

How old are you? 25?

Where are these properties that doubled? I'm in NOVA, they didn't here.

You missed that time when we pondered people who bought a great house around 2000-2001 before prices doubled, tripled, up to 10x value. How did that feeeeeeel. I'd love to know.

I'd also love to know how tearing down a $1m home to build a new 7000+ sq ft McModern with new crypto money or family money would feeeel. Maybe I should ask folks here.

You sound lovely.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:18 years ago I bought a starter home at 6% interest but it doubled in value when I sold it 10 years later. I used the proceeds to pay off all of our student loans and put a big down payment on another house in the suburbs. I got a 2.875% interest rate for 15 years and have been paying extra so I’m almost done with my mortgage. Somehow I’m a lowly federal employee sitting on a $1.8 million house in Chevy Chase nearly fully paid off. It feels great, and I’m sure no one knows when I take the metro downtown with my brown bag lunch like the average schmo. Lots of luck.

It troubles me that our federal employees have so little financial sense.

NP. What are you referring to? That they could have kept the % for 15 (or even have gone for 30) and invested the extra payment money in the markets to make more?

If so, not everyone is comfortable investing in stocks and/or bonds. I think he/she has done great.

I think PP was referring to the foolishness of paying extra on a 2.875% mortgage.

Some people want that piece of mind of not having a mortgage, being debt free. Other folks see the opportunity to do better either in the stock market or in a CD paying a current rate of 5%. But with inflation running at at least 2%+, I actually favor paying back over a longer period of times esp with my 3.25% fixed rate mortgage. Those payments in 10 years which are fixed will have much less purchasing power. Your enemy is inflation, and that is how the Federal govt is going to deal with their $32 Trillion in debt. They will pay it back with "cheap" dollars.

Is it foolish to pay extra on a 3% mortgage?

At what percentage is it not foolish?

[Anonymous]

Ours hasn’t doubled, but it’s up 30-40% based on Zillow estimates.
I know it was nothing but dumb luck that we got the price and interest rate we did. We could never afford our house at the current price and rates, which makes me grateful for what we have — and very sympathetic to those who are trying to buy now/over the last few years

[Anonymous]

Sold my home and bought a stock that went up 4x in two years. It actually went up a lot more, but I only caught the end of it. It should be going up 10x in next 5-6 years. No taxes to pay or upkeep.
Will be transferring the shares to Roth $7000 to be able to keep all the growth going forward. The transfer can give me extra shares, just like buying and selling inside of Roth which hardly anyone mentions.
Done with real estate, not for me at this stage in my life.

[Anonymous]

My house has increased 33% in 4 years, which is great. If we want to sell and get something bigger, everything in neighborhoods where we want to live has also increased. So yeah, it's awesome that our little home has increased, but it doesn't mean much right now.

[Anonymous]

Anonymous wrote:Sold my home and bought a stock that went up 4x in two years. It actually went up a lot more, but I only caught the end of it. It should be going up 10x in next 5-6 years. No taxes to pay or upkeep.
Will be transferring the shares to Roth $7000 to be able to keep all the growth going forward. The transfer can give me extra shares, just like buying and selling inside of Roth which hardly anyone mentions.
Done with real estate, not for me at this stage in my life.

"It should be going up 10x in next 5-6 years"

I wish I had such certainty!

[Anonymous]

just glad to see some people actually acknowledging luck in their financial risk and endeavors.
some people can do the exact same thing and they have bad luck/timing versus your good luck.