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Jeptha -> RE: Pension Pain (2/28/2009 9:18:14 AM)
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quote:
ORIGINAL: RealityLicks
The number of people in negative equity has soared from 0.1% a year ago to 17% today.
I don't understand why this has reached "crisis" stature.
If you invest in something and the value goes down...well, I don't know what to tell you.
That's what often happens with "things" - the value fluctuates.
It's the nature of all markets since time immemorial, is it not?
If you thought your home worth the price when you bought it, you should remain happy with it.
If you bought it as an investment to turn around quickly, then you're not the investor you thought you were, and will take it on the chin or devise another strategy.
Crappy luck, but that's what sometimes happens.
I'm lacking sympathy because I live in a rathole because that's all I could afford and I knew that. I made a realistic assessment of the relative value of the property, its potential future, and my own ability to pay.
In my city, even with the market downturn, house values are still *grossly* inflated.
It could be that demand will keep prices high, but it's a risky market, as things could continue to go down.
What to do? Buyer beware.
I look all around me and see goods and services that aren't worth half the asking price.
(at least not to me at the moment; it depends on how much disposable income is coming in, of course...)
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