patio villas decreasing??

[babs10]

I read the few posts about new patio villas decreasing. How is the rest of the market going? I am an owner and I am concerned to hear this, is it true they are dropping 20 K?

worried

[billethkid]

Everything is relative. If one paid top $$ during the boom, there is no doubt some fall off in compared pricing. If you don't have to sell, you have nothing to worry about.
In many other area of TV where prices were sky rocketing because of demand, yes some of those are down but only to realistic levels.

TV has weathered several recessions and down turns over the past 40 years and the only thing that has happened for sure is....values have continued to appreciate.

It irritates me when some say they "lost" $x when they sold....they most likely not only did not lose but just did not make as much gain as compared to the peak pricing...they still made out.

TV was and still is a good, safe investment.
To worry less just ignore the media driven housing and financing crisis. Their objectives have NOTHING to do with home ownership.

My opinion!!!

BTK

[gfmucci]

I hope no one is worried about the price of their home after they purchased it. In fact, I've heard experts discussing the cause of our housing market collapse say that the major cause of it was people using housing as a speculative investment instead of as a place to live and enjoy life. I'm hoping only my heirs will need to be concerned about how much the house is worth 20 years from now. And by then the reverse mortgage will even make that a moot point. :o :bigthumbsup:

[SteveFromNY]

I agree one shouldn't be worried about the cost of a house after purchasing it, and I understand about heirs, but I still like to know what my R/E is worth.
My situation will have me as a snowbird for awhile, but not forever, and I am expecting to sell one of the homes in the future (the one up north I expect) and use the proceeds to help fund the remainder of our retirement. I'm talking 10 years before I sell, and I built a spreadsheet that has the home's values compounding at 5%. If it all works out much differently I'll have to die sooner! :o
My point being that even after I've bought, I still want to know. Just like I'd want to know how much I have in the bank. Or if there's enough beer in the fridge! I wouldn't worry about it, but I may have to adjust my plans to fit the reality of the situation.

[Russ_Boston]

Assuming a 5% rate of return in perpetuity is one of the reasons we have collapsed. But for planning purposes only i guess it's fine.

I actually just put things in today's dollars - For example I'll say that my home is worth 500k and i won't change that figure and then look up a TV house and let's say i get it for 400K. By doing that, as long as the houses move together in the same fashion, you don't need to do future return analysis. It works for me and i haven't changed the value of either house for 3 years in my spreadsheet even though i know that they have both gone down.

I'll get there - someday!

[JohnN]

I'd not worry about it, gotta live somewhere and they're all going up or down

[SteveFromNY]

Assuming a 5% rate of return in perpetuity is one of the reasons we have collapsed. But for planning purposes only i guess it's fine.



Russ I've owned the home I live in for 25 years. It's in NYC, which could be a factor. It has appreciated at a compounded rate of 9% since 1983. I am starting with the original sale price, and ending with an offer on the property I just received. That growth rate factors in all of the ups and downs of the market since 1983, including the most recent. In fact, it was on track for an 11% rate until 2006 when things leveled off and then started retreating.

Since the other property I have in my plan is only 2 miles from my original house, I think 5% is a reasonable planning number. I purchased it in January of 07, so it saw some of the recent market adjustments in the purchase price, but it's devalued some since then I'd guess. So again, seems reasonable to me to plan at 5%. I am not as sure about the property in FL - perhaps 5% is too aggressive there. But my plan calls for me to keep that property and dump the one in NYC in 10 or so years.

Certainly if you keep the values in your spreadsheet flat, you will be better off when it's time to cash in your chips. It should offer you a decent cushion in the future.

I am using 4% for inflation, and my financial advisor says that's high. Amazing what a few points can do to the plan! If I change to 3.5% (which is the prevailing inflation rate for most of the 20th century according to one website I found) I can live a lot longer before running out of money.

Anyway, I think the key to being sure you have the right means to retire comes with the planning (along with a few bucks of course), and it sounds like your spreadsheet will do the job for you. Good luck!