Comments on: Home Prices Keep Falling http://www.consumerismcommentary.com/2008/12/30/home-prices-keep-falling/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Goalhunter http://www.consumerismcommentary.com/2008/12/30/home-prices-keep-falling/#comment-186963 Goalhunter Wed, 31 Dec 2008 14:45:41 +0000 http://www.consumerismcommentary.com/?p=4923#comment-186963 Two views: It feels different depending on if you live in the home or use it as investment. I own 5 homes, and none of them have depreciated below their purchase price although the one I'm currently selling has depreciated about 10% from the peak when I should have sold. They're investment properties so their worth is entirely measured by their net value: if the value falls then I get sad. If the value turns negative because I owe more than it's worth then things get dangerous. Regarding homes for living in, I think you look at it from the cash flows and timelines. Prior to the drop in value you would have owned your home in X years paying Y per month. You will still own the home in the same amount of time paying the same rate and you couldn't do better by renting. People who live in a home have no real issue, assuming they bought one they could afford. Two views: It feels different depending on if you live in the home or use it as investment.

I own 5 homes, and none of them have depreciated below their purchase price although the one I’m currently selling has depreciated about 10% from the peak when I should have sold. They’re investment properties so their worth is entirely measured by their net value: if the value falls then I get sad. If the value turns negative because I owe more than it’s worth then things get dangerous.

Regarding homes for living in, I think you look at it from the cash flows and timelines. Prior to the drop in value you would have owned your home in X years paying Y per month. You will still own the home in the same amount of time paying the same rate and you couldn’t do better by renting.

People who live in a home have no real issue, assuming they bought one they could afford.

]]> By: Smithee http://www.consumerismcommentary.com/2008/12/30/home-prices-keep-falling/#comment-186948 Smithee Tue, 30 Dec 2008 15:57:52 +0000 http://www.consumerismcommentary.com/?p=4923#comment-186948 Should people affected by lower housing prices do anything differently, do you think? Should people affected by lower housing prices do anything differently, do you think?

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