Your home is not an ATM machine
Was with friends Saturday night and one of our friends will be buying a VERY expensive home. He was talking about the investment, what a good deal it was, etc. I reminded him that your home is your haven, a refuge for you and your family. Although if you own it long enough you will make (a lot of) money, it should not be viewed as an investment.
He has two children in their early teens and it seems like now is the time for him to make the big move up, he can afford it and his family will really appreciate the extra space and WOW factor of their new home. If he waits too long, his family will be off to school.
It amazes me when people sell their home so they can wait out the market, I had clients do this years ago and this “missed” the mark, they are still renting. One more “peeve”: your home is not an ATM machine. You should never keep pulling your equity out through refinances. It's a downward spiral.
Categories: Homeowner's Benefits and Woes, A Buyer's Perspective
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2/22/2008 10:43 AM
Los Angeles Real Estate Blog wrote:
3 Notices of Default were filed in La Canada this week. According to multiple listing service (MLS) records for the past 6 months: 73 homes sold Average sale price $1,630,549Average days on market 87Let’s look at the three homes with the Notices of Default (NOD’s): Home # 1 is in La Canada’s canyonPurchased in 1995 for under $1,000,000Currently on the market for over $2,000,000The owners have been borrowing against the equity in the home since a couple of years after their initial purchase and unfortunately it has caught up with them. They probably can’t continue making payments ...
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