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ok, I mean, I get it. You want to maintain or increase the value of your property over time and homes are considered an investment. But people rarely consider the resale value of a vehicle when deciding on it. And with the exception of very few brands, car values sink like a rock where as homes tend to trend up.
Why don't more people consider their families individual needs rather than just maintaining resale value? If you need if you find yourself in need of 4 bedrooms and you only have 3, turning your absurdly large master into 2 rooms could be an option but then people say but my resell. Or you really need more closet space and upstairs laundry instead of another bathroom.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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A home, even the property if the home is trashed is still an investment that goes up in value. Our, for example, cost $190,000 in 1993, now at about $800,000. If you stay in it long enough, when you split a large master into to smaller bedrooms it could reduce the value some but still make for a great return, if in a desirable area.
Cars are not a good comparison, with the exception of the most rare and beloved classics. Miles and age both reduce the value over time, and they are kept an average of 11 years then traded in at about 100-120,000 miles, before costly major repairs are needed. I laugh when I hear an ad for a car where they carry on about the high resale value. If their cars were so great people would keep them a lot longer and not worry about the resale value.
People supposedly have been staying in their homes only a few years, on average.
From what I have seen, that isn’t true, but another C-D thread has a link to a study claiming that average homeowner tenancy is only 4 years.
Personally, I place resale value much, much lower in priority than having the house suit our needs, not that of anyone else.
As for cars, worrying about resale value is silly, other than, again, getting what fits your needs, and taking good care of the vehicles. Other than that, focusing on vehicle resale value is pennywise and poundfoolish. Trends in vehicle popularity fluctuate, for one thing. And for very old ones, condition matters more than trim level or convenience features.
I agree about the house and the car. Resale value of a car is negligible at best. I was just trying to make a point that cars value drops like a rock no matter how much you spent and now matter what kind of car. But a house value rises steadily in a normal economy and yet people seem to be obsessed with increasing resale value over actually ensuring their home meets their needs.
Quote:
Originally Posted by pikabike
People supposedly have been staying in their homes only a few years, on average.
From what I have seen, that isn’t true, but another C-D thread has a link to a study claiming that average homeowner tenancy is only 4 years.
Personally, I place resale value much, much lower in priority than having the house suit our needs, not that of anyone else.
As for cars, worrying about resale value is silly, other than, again, getting what fits your needs, and taking good care of the vehicles. Other than that, focusing on vehicle resale value is pennywise and poundfoolish. Trends in vehicle popularity fluctuate, for one thing. And for very old ones, condition matters more than trim level or convenience features.
Youre right though, people have begun to view a home transaction as easy and interchange homes very quickly to a different house that works better. But in that case they lose a lot of their initial investment in the home.
Quote:
Originally Posted by Hemlock140
A home, even the property if the home is trashed is still an investment that goes up in value. Our, for example, cost $190,000 in 1993, now at about $800,000. If you stay in it long enough, when you split a large master into to smaller bedrooms it could reduce the value some but still make for a great return, if in a desirable area.
Cars are not a good comparison, with the exception of the most rare and beloved classics. Miles and age both reduce the value over time, and they are kept an average of 11 years then traded in at about 100-120,000 miles, before costly major repairs are needed. I laugh when I hear an ad for a car where they carry on about the high resale value. If their cars were so great people would keep them a lot longer and not worry about the resale value.
There is actually a theory out there that rising home values is the best way for middle class families to build wealth. The fact that minorities have been historically shut out of buying homes keeps them from building personal wealth, that gets used or passed on to heirs. I am generalizing here; I realize there are always exceptions, and this is only someone else’s perception anyway.
But for many people, their home is their most valuable asset, and biggest investment.
I do agree that the needs of the family should be most important when buying and/or modifying a house.
Since you don’t generally get all one’s dollars back on renos, I think it is wise to do renos early, so family can enjoy them. I do not think it wise to do a major reno a few months before listing the house.
But, since a home is a major investment, it is smart to keep it up and update when needed.
One problem is that many people conflate house and land values.
Houses do tend to depreciate, but rising land values hide this aspect of the "property" value.
In my neighborhood, many houses have negative value as they have to be demolished so the new house can occupy the land. This includes even well-maintained houses.
We have done well buying selling with stays of 3-5 years. A house is only an investment if you can afford to loose it. Until you have cash in hand you have nothing. The "we bought for xxx and it is worth now" stories are great but you depend on a buyer to pay the "worth now". All it takes is a couple neighbors selling below market, your comps go down, your appraisal goes down, ...... . Then you have give or take 10% fees to take out of the proceeds.
Our houses have been built or remodeled for our needs. The last one will hopefully do some good for a lot of unwanted furry critters with whiskers not some family member waiting on the sidelines.
OP: I completely agree with you - most people are hung up on this to a ridiculous point - they are usually the "cookie cutter - Stepford Wife" type of people who are so scared and can't think "out of the box."
These people freak out if they see a blue wall (instead of gray, white, or beige). I think it physically sickens them and they might have to take medication for their response.
It's the "status quo" type of person who will obsess about "resale value."
If a person has good taste and decorates their home "tastefully" (meaning high-end finishes, artistic treatments, etc.) there is absolutely no repercussions to be had.
I have shown lots of houses and the artistic ones garner the most interest - so the opposite should be happening - people should be getting creative and expressing themselves, but so many people are just terrified of "resale value."
People should add up all of the mortgage interest, repairs, property tax and routine maintenance before they decide if their home was a good "investment"
Now you have to live somewhere, so there is something to be said for that, but investment is an entirely different thing
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