I'm in shock...in a good way

[bigsteel15]

I just found out that our home has WAY mor value than we thought.
We bought our 2 BR, 1 bath, 4 level split home (no garage) 5 yrs ago for 115K.
We knew going in that we were getting in at a good time and got a good deal on the 7 yr old former model home. Vaulted ceiling on main floor, huge kitchen. 2 yrs ago we re-mortgaged to take some equity and it was valued at 175K.
Anyways, my neighbors are moving. they have a 2+1 BR bi-level, 2 baths, finished basement, conctrete parking pad. Their realtor says to list at 280K.
HOLY ($@%!!
I figure if I re-arrange the roughed in walls in my unfinished 4th level to make a legit bedroom, finish the bathroom and install proper flooring, by next spring I should be looking at well over 300K.
There could be an acreage with large shop in my future. Higher payments as well of course.

[mater]

That is a very good increase over 5 years. Looks like you bought at the right time.

[JSUPreston]

It's amazing how that sometimes happens. My wife and I managed to buy a house several years ago for 67.5, worth 69.5 at the time. We did a little work, repainted and had a couple of major repairs. When we sold it, we took 77.5, and it appraised for 82.5. With what we paid in during our mortgage, and after paying for a new roof when we sold, we walked out with over $10,000 in our pockets.

Then again, my BIL takes the cake. He bought a duplex several years ago for around 180. I think last summer it would have gone for over 300. Then again, he has something very desireable right now...a house in New Orleans that didn't flood during Katrina. He had lots of wind damage (big hole in renter's side of duplex roof), and there was some water in his neighborhood, but since his house is 3.5 to 4 feet above ground, the water just flowed underneath and didn't cause any problems. No telling what he can get for it now.

[LinuxRandal]

Wait till the days when you pay your own property taxes, then you won't find it such a good thing. Unfortunately for me, it would be too costly to move, but my local school districts taxes, make my taxes, double my neighbors, and sell much much slower.

[atgcpaul]

It's amazing how that sometimes happens. My wife and I managed to buy a house several years ago for 67.5, worth 69.5 at the time. We did a little work, repainted and had a couple of major repairs. When we sold it, we took 77.5, and it appraised for 82.5. With what we paid in during our mortgage, and after paying for a new roof when we sold, we walked out with over $10,000 in our pockets.

We just closed on our house in San Diego. We even had to take a $45K
reduction in price and pay for some of their closing costs, but at the end
of today, there should be an extra $160K in my account after 4 years. I
*almost* feel bad but they got all my renovations and weather and now
I'm trying to survive this East Coast humidity again.

[bigsteel15]

We just closed on our house in San Diego. We even had to take a $45K
reduction in price and pay for some of their closing costs, but at the end
of today, there should be an extra $160K in my account after 4 years. I
*almost* feel bad but they got all my renovations and weather and now
I'm trying to survive this East Coast humidity again.

Looks like Alberta isn't the only place having a real estate boom.

[JR]

Looks like Alberta isn't the only place having a real estate boom.

LOL. The home values being thrown around on this thread don't make down payment in California right now! Talk about a boom.

BTW - Paul's $45K price reduction is part of a major event in California real estate. San Diego County, where Paul's condo is located, just posted a 1% year-over-year reduction in the median price of houses sold during June. That is the first California county to report a y-o-y price drop since 1996.

On behalf of all California homeowners I sarcastically say to Paul "Thanks, man!"

JR

[bigsteel15]

LOL. The home values being thrown around on this thread don't make down payment in California right now! Talk about a boom.

JR

Kind of thought that might be the case. 45K seemed liked a big drop unless the actual price was a lot higher than "normal".
BTW, here in Edmonton we are just catching up with the rest of Alberta regarding house prices. Fort McMurray (oil sands central) which is 4-5 hours north of here (burr!!) you can't even buy a mobile home for under 300K.
I know people getting $2500 for rental of a bedroom in their house. That's not R&B, just the room.
There are about 80,000 residents and probably 10-15,000 temporary workers at any given time.

[atgcpaul]

Kind of thought that might be the case. 45K seemed liked a big drop unless the actual price was a lot higher than "normal".
BTW, here in Edmonton we are just catching up with the rest of Alberta regarding house prices. Fort McMurray (oil sands central) which is 4-5 hours north of here (burr!!) you can't even buy a mobile home for under 300K.
I know people getting $2500 for rental of a bedroom in their house. That's not R&B, just the room.
There are about 80,000 residents and probably 10-15,000 temporary workers at any given time.

Despite the profit we got, 45K was a huge drop for me in terms of ego. My
neighbor bought her condo at the peak last summer for $469K. If she paid
that much, then mine was easily worth $40K more than hers. I upgraded
every room in that place whereas her previous owners only painted. Same
kitchen, fixtures, etc from 20 years ago. We had to go below what she got
for hers. Oh well. At least it finally sold--2 months on market and with a
pending cross-country move looming made for some stressful times. On top
of that, our HOA (same HOA that shut down my workshop) almost sank the
deal because they wouldn't commit to paying for termite repairs on parts of
the house they were responsible for.

However, I do think the whole California market is completely inflated, and sorry
if I contributed to that. It's good to see that it's cooling off for all the
upstarts looking for their first place. I couldn't afford to buy my own house
if I had to do it over again today.

Paul

[Hellrazor]

The house price boom is going to go boom if the economy takes a dive again. Just wait when the $300k house you bought last year is work 190k again. Reality is going to strike again with the market being cranky and the oil prices going sky high.