Who Has Lost Money on Real Estate?

[cschin4]

Seems like you hear one success story after another. And, I know there are hot real estate markets, but I do not live in one. I "lost" money on the sale of our last home. We purchased it for 78K in 1997 and sold it for 85K in 2002. We got a little more than we paid. But, really, when you look at closing costs and the money we spent on remodeling such as all new carpeting, fence installed, roof repair, gutters, porch remodel, etc, I would say we came out in the hole. And, that is why I am leary to get into any rental market as I know that houses can quickly become a money pit. We sold our home because we knew we would just keep putting money into it and would never be worth much more. I would like to hear some stories about those who have not made money or lost money with real estate. I think it could be a good word of caution for us all.

[Ima saver]

I bought my first house for $13,000, added a room and pool and sold for $44,000. I built my 2nd house for $44,000 and sold for $80,000. House 3 cost about $80,000 and I sold for $110,000. This one cost about $300,000 and should be worth over a half mil.

Now to the downside, I bought 3 rentals and rented them out. I sold everyone of them at a loss cause I had to spend so much money to fix them up. That was in the early 80's!

[Gruntina]

I wonder if it worth putting a little money into your home that you love and want to live very long term knowing the home value probably won't go up? Is that stupid to do?

[JanH]

Originally Posted by Gruntina

I wonder if it worth putting a little money into your home that you love and want to live very long term knowing the home value probably won't go up? Is that stupid to do?

I think it would be like getting new clothes for the house. Every once in awhile, you want something new to dress yourself up. And we ALL need maintenance--so does our homes. I had to wonder myself when we left for Hurricane Rita. Saying goodbye to your home makes you wonder if you should invest yourself in it. But it is your nest, your haven, your resting place. I say it should make you feel welcome when you get home. Do it for you.

[MonkeyMama]

Originally Posted by Gruntina

I wonder if it worth putting a little money into your home that you love and want to live very long term knowing the home value probably won't go up? Is that stupid to do?

I would do it. I don't think home value is everything - as long as you can do it and afford to take a loss.

[Snoopy2645]

Well I am in IA & where I am the housing is not going up I believe the house just like mine sold for about what I bought this house for 7yrs ago maybe 5k more BAD BAD BAD thing for sellers!!! Dh seems to think we can sale this house for 5-10k more than we bad he thinks thats awesome I think that is VERY DEPRESSING!!! After realator costs & all of that if you sale for a little more say even 10k more you are actually loosing money!!!

[Ima saver]

It really depends on where you live! Our homes and prices have tripled around here.