allycovey
 
Intermediate
AR USA
Member since 11/16/07
Posts: 1418 |
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Date: 3/21/12 6:11 PM We were lucky in that my sister wanted to buy our house and we had agreed to a price two years ago. She was renting it until they got their credit score up to buy. So their credit score is now up and they went to buy. Real Estate Values in our area have dropped 40% in the last two years apparently. We bought that house 30 years ago and completely remodeled it. Her purchase was going to pay off our new home (with just a little extra) DH was going to get to take his retirement. Sis is willing to wait until the markets go back up so that is good, but DH is devastated the value's of homes dropped so drastically. I was all set to get a Horizon 7700 but I guess not now. |
KathySews
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MI USA
Member since 10/1/06
Posts: 2892 |
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Date: 3/21/12 8:04 PM 40% drop in 2 years? wow I am so sorry. It seems like all the rules have changed on us. |
jeanau
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PA USA
Member since 4/19/07
Posts: 218 |
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Date: 3/21/12 9:38 PM It is so hard to know what is up and down anymore...I hope that this is a temporary down and values will go back up again for you soon! |
Peggy
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MT USA
Member since 10/8/02
Posts: 651 |
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Date: 3/21/12 10:34 PM Wow that is a huge drop in two years. Have you had your property appraised? I sell real estate in Montana and we have suffered too but not that bad. I know we are luckier than other areas of the country.
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SouthernStitch
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LA USA
Member since 8/24/02
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Date: 3/22/12 9:26 AM I'm so sorry to hear this. Things will get better - and you are very lucky you have such a sister who is willing to wait till things get better for you. I hope you find a way to get the machine you want someday.  ------
Bernina 730E, 530, and 350PE
Singer 221 FW, 403a
When life gives you green velvet curtains, make a green velvet dress. |
poorpigling
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TX USA
Member since 12/28/07
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Date: 3/22/12 11:08 AM
Ally, am so sorry you are being affected by this downturn in the housing market. Pity you could not sell it outright two years ago. but at least you have a really good renter for now.
Its much the same through out the USA.. Except for some areas for the most part home prices are down. The only upside is the drop in our property tax bill.
There were many reasons why home prices dropped.. but the main one was the artificial values placed on them in the first place ...too many were wayyyyy overpriced for their actual value. Seemed strange to me at the time.. that a home had several thousands of dollars tacked on the value beyond what it cost in lumber , materials and labor.. That did not make sense to me.. that you could build another home just like it at less than half the cost..
However, that is not the point now.. the message I wish to send is this.. it may be quite a while before your market recovers.. Some are advising over l0 years away.. Only you can determine if it would now cost more to build your home than to buy one just like it. if it would.. then your value may recover faster.. Foreclosures are keeping down some markets that should have been on the upswing by now.
It is a particularly rough situation for those of us who were planning on the equity in our homes to partially fund our retirement. I don't think that is a comfortable bet to make anymore.. I think you are going to have to plan on your retirement funds coming from other sources.. for quite some time.. Perhaps you can just pay off your present home you are living in.. so not to have mortgage payments there.. or pay off the first home.. then using the rental income to supplement your other income.
Don't depend on the market to recover ANYTIME soon.. it may be years and years away.. Homes that were overpriced to begin with will take even longer to recover. In fact many homes will not return to their old market values in my lifetime I am afraid.
The whole economy has been quite a shock to us all.
For buyers its a great time to buy.. We are tossing around the idea of looking for a retirement home now.. knowing we would still keep our present home till the day my DH does retire.. then most likely rent it out for the income. or simply sell at market value at that time and take the hit for any loss of value.. as really.. what else can we do. In some areas home prices are still falling btw.
So perhaps you and your DH should sit down and ask yourself. . ''What should we do if the market value of that home does not go up anytime soon ?'' |
quiltingwolf
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MD USA
Member since 12/15/02
Posts: 4986 |
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Date: 3/22/12 11:33 AM Can hubby postpone retirement a few months so you could get your machine. I think sometimes you have to ask yourself if not now when? Everyday we get older. I've been lusting after that machine also. But I know right now it's a pipe dream. So I try to be content with the machine I have which is a nice one. Have you thought about the Janome 6600? It has a lot of the same features but less stitches and I think 500-900 dollars cheaper. ------
quiltingwolf.blogspot.com |
allycovey
Intermediate
AR USA
Member since 11/16/07
Posts: 1418 |
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Date: 3/22/12 6:44 PM thank you all. I think we have settled in our minds we arent getting what we want. Foreclosures were the problem. Maybe it will come up a little in the next two years DH is going to wait that long to retire. I can wait for awhile on the SM who knows maybe something even more spectaacular will come around and i can get it. boy did it take me by surprise. |
PattiAnnJ
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OH USA
Member since 12/3/06
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 1 member likes this.
Date: 3/22/12 7:14 PM Quote: allycovey
We were lucky in that my sister wanted to buy our house and we had agreed to a price two years ago. She was renting it until they got their credit score up to buy. So their credit score is now up and they went to buy. Real Estate Values in our area have dropped 40% in the last two years apparently. We bought that house 30 years ago and completely remodeled it. Her purchase was going to pay off our new home (with just a little extra) DH was going to get to take his retirement. Sis is willing to wait until the markets go back up so that is good, but DH is devastated the value's of homes dropped so drastically. I was all set to get a Horizon 7700 but I guess not now.
"Apparently"? I would do some research on this.
And.......no matter how much you love your sister, never do business with a relative or friend. |
Sweetsong
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MI USA
Member since 12/26/05
Posts: 955 |
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Date: 3/22/12 8:52 PM Quote:
And.......no matter how much you love your sister, never do business with a relative or friend.
...unless you have a legally binding/signed agreement. Never by word of mouth or a hand shake. Loaned or borrowed money should always have the paperwork to back it up. |
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