westernrvparkowner wrote:
There is virtually no way a home you purchased 28 years ago has not appreciated in value provided you have done reasonable maintenance. I just don't believe you have your facts correct.
In general, you're correct. Buy a home, it's an investment, right?
BUT there are plenty of areas in this country that home and property values have been steadily decreasing for many years now.
Not talking ups u downs of the economy, talking steady decline.
One area I'm very familiar with and has not been financially prosperous for us, or the folks that live there is Northern WI.
I built a house there, nice custom log home, 2600sf + walkout unfinished basement on 2+ acres, on a lake close to town, power/phone/cable, paved road.
Cost of building the house was right at $200k labor, materials and subs. Cost to build it with fee/markup would have been about $240k.
House was completed exactly 19 years ago.
The next year it was assessed for $335k!! Woohoo, great, right?
Well that was BS. It steadily declined from there. About 5 years ago the tax assessment was down to about $290k. Still BS. Finally got the township to drop it to $225k but it took some serious work, badgering, applications, providing sales data, etc. I did this all because noone would buy it with such a high tax value.
Finally sold it a couple years ago. Took over a year to sell, got about $200k. $197k to be exact because the buyers knew it was them or noone, so they low balled, then re-nigged, then walked away, then came back etc until they squeezed everything out they could.
Oh, and it was well maintained, highest quality building materials, 40yr shingles, well kept wood work, top $ wood windows, R32/R50 insulation, 200A service. Only thing it lacked was fancy landscaping and a paved driveway.
Matt Colie, sounds like he got hosed by the UAW and the economy in SE Michigan. Not unlike other areas WV, AR, upper midwest, where thriving industry died and those that didn't leave die with it.
If we'd stayed in N WI 19 years ago, we'd be alive, we'd probably be debt free similar to now, but our net worth would be about 20% of what it is currently. Seriously.
Beautiful place to live if you're retired, already have money or don't want to have money....