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Originally Posted by clouwho
We moved into the Village of Largo two years ago. The homes in our area were built snd sold during the boom of 2005-2006. When you factor in the $20-30k in upgrades most of my neighbors put into their homes for birdcages, crown molding, plantation shutters, upgraded finishes, landscaping, etc…they JUST broke even on their investment when we purchased our home in 2020.
It took 14 years for the market to recover from the bubble they bought in!
The bubble we are in now puts the bubble of that era to shame.
The good news is that in this chapter of life the “investment” factor for buying our homes isn’t such a big deal if we have other retirement assets. But if your home is a substantial part of your net worth and you may need that equity for nursing home care or such in the future, buying in this bubble could be a costly long term mistake.
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Quote:
Originally Posted by dewilson58
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You laugh, but clouwho makes a valid point.
When looking at the increase in price of resales, what is often overlooked is the cost of upgrades. When the houses were originally sold, they were "bare-bones", at least most of them. Minimal landscaping, no plantation shutters, no crown molding. Carpeting throughout.
Many people invested 10s of thousands of dollars on various upgrades, along with paying off 20K or so of bonds.
Yes, the market has gone up, but when you add in those other costs, it negates a considerable amount of that "profit".