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Old 08-26-2019, 08:06 AM
 
21,618 posts, read 31,197,189 times
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In funny news, Sen. Chris Murphy sold his house in Cheshire at a pretty steep discount. He listed it for 519 and ended up closing for 40k less at 478. He bought it 10 years ago for 477.

Ouch.

 
Old 08-26-2019, 10:49 AM
 
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Quote:
Originally Posted by kidyankee764 View Post
In funny news, Sen. Chris Murphy sold his house in Cheshire at a pretty steep discount. He listed it for 519 and ended up closing for 40k less at 478. He bought it 10 years ago for 477.

Ouch.

It's even worse when you adjust the numbers for inflation. The house should have been $614k. A 22% loss.
 
Old 08-26-2019, 11:31 AM
 
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Originally Posted by GeoffD View Post
It's even worse when you adjust the numbers for inflation. The house should have been $614k. A 22% loss.
Then add in how much rent would have cost.....and it comes closer to break even.
 
Old 08-26-2019, 11:55 AM
 
Location: USA
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Originally Posted by robr2 View Post
Then add in how much rent would have cost.....and it comes closer to break even.
Right on point, he's more than happy to just get rid of it. Buying 10 years ago (after the crash by the way) for 477 and selling today for 478, he's probably built up some decent equity that he doesn't care. Sure beats buying for 600 at the top of the market in 05 or 06, and selling now for 478.
 
Old 08-26-2019, 01:03 PM
 
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Originally Posted by robr2 View Post
Then add in how much rent would have cost.....and it comes closer to break even.
Exactly. I just sold a house I bought 10 years ago for a few percentage points more than I paid.

I needed a place to live, got the mortgage interest and SALT deduction, and being in that particular place afforded me a ton of financial flexibility that I might not have had otherwise.

Timing is everything. If I had bought outside of DC in 05-06, I would still be underwater.
 
Old 08-26-2019, 01:17 PM
 
21,618 posts, read 31,197,189 times
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Quote:
Originally Posted by SteveM85 View Post
Right on point, he's more than happy to just get rid of it. Buying 10 years ago (after the crash by the way) for 477 and selling today for 478, he's probably built up some decent equity that he doesn't care. Sure beats buying for 600 at the top of the market in 05 or 06, and selling now for 478.
Equity or not, selling at what you purchased a home for a decade later is terrible.
 
Old 08-26-2019, 01:58 PM
 
1,929 posts, read 2,039,267 times
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Originally Posted by kidyankee764 View Post
Equity or not, selling at what you purchased a home for a decade later is terrible.
A primary residence is not and should not be viewed as an investment regardless of where one lives. That is just fallacious logic.
 
Old 08-26-2019, 02:09 PM
 
21,618 posts, read 31,197,189 times
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Originally Posted by hvexpatinct View Post
A primary residence is not and should not be viewed as an investment regardless of where one lives. That is just fallacious logic.
Who said the property needed to be an investment? Taking solely inflation into account, for the past decade, that Cheshire home should be worth a lot more. Seeing that stats show the average inflation rate is ~ 2% a year, do the math. Again, ouch.
 
Old 08-26-2019, 02:28 PM
 
Location: USA
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Quote:
Originally Posted by kidyankee764 View Post
Who said the property needed to be an investment? Taking solely inflation into account, for the past decade, that Cheshire home should be worth a lot more. Seeing that stats show the average inflation rate is ~ 2% a year, do the math. Again, ouch.
Ehh, I'm not sure home prices correlate with inflation. It's supply and demand. Mortgage interest rates haven't risen much in that time frame either. We're not talking about buying a dozen eggs and milk here.
 
Old 08-26-2019, 03:23 PM
 
570 posts, read 477,410 times
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Quote:
Originally Posted by SteveM85 View Post
Ehh, I'm not sure home prices correlate with inflation. It's supply and demand. Mortgage interest rates haven't risen much in that time frame either. We're not talking about buying a dozen eggs and milk here.
Let's see, my parents bought home outside Denville, NJ in 1972 for $32k and sold it in 1987 for $150k. That is a nice investment. When will the Gen X and millennials get that type of appreciation? Instead we now get comments like "what do you expect? It is a house" You wonder why relative newcomers to homes feel differently about economy than people who have bought 30- 40 years ago. Government decided that big winners were those who bought before 2000 and everyone after is a big sucker. That is what manipulation and false demand does.
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