Real estate sticker shock

[magid]

I just visited my downstairs neighbors, the other ones selling in my building. They realized that with two kids, there just isn't room in their place. Currently, the livingroom is the kid's room, and the second bedroom is a tiny study. They may be crammed in, but they have the place looking really nice, actually.

So I asked how much they're asking. And she said they're asking what the across-the-hall neighbors got... $354K. (This is for an 854 sq. ft. apt, 2 BR, 1 BA, storage in the basement.)

O. M. G.

This is far more than double what I paid 7.5 years ago. Part of me is pleased I have a worthwhile investment (especially since the markets are down so far), but part of me is just in sticker shock. Not that I haven't seen the ads for places, but this makes it far more real how absurdly overpriced things are around here.

(Anyone want to live downstairs?)

Comments

[pinkfish.livejournal.com]

When we refinanced last year, we got a similar shock in our appraisal, roughly double what we paid.

We keep reminding ourselves that this is funny money, and that the bottom of this inflated market could drop out any day. Its at those times that we consider selling and moving, but since the whole market is inflated this way, we aren't sure where we'd live.

[zzbottom.livejournal.com]

It's often at this point that people say "Hey, let's sell our place here and take the equity profits and go start a B&B in Vermont! There are roughly 4 such B&Bs in every little hamlet in Vermont, now. So, please, don't go buy a B&B in Vermont, whatever you do! :)

Seriously, though, the money can go a long way toward a lifestyle change, if one wanted such. Assuming an equity profit of about $200,000 a person could move to Vermont or upstate Maine (read: non-tourist location) and buy a nice 3-4 bedroom farmhouse on about five acres, renovate the place, and have a zero mortgage payment. The only question then becomes one of earning a living. Can you say "next great American novel"?

[bitty.livejournal.com]

aw, but Bitty's B&B would be so much better than all the others! it would feature chocolate! and cookies! for starters.

see, i'd love to like make money here, and then move to maine. bubblebabble is too urban. dammit.

[magid.livejournal.com]

Bitty's better! Bitty's better! Bitty's better!

[magid.livejournal.com]

Or, possibly, "telecommute."

[magid.livejournal.com]

Same problem, compounded with the current desire to be in a particular kind of Jewish community (not so findable in rural Maine, unfortunately). Though we figured out at lunch that I could rent out my place and live in Portland (OR), with the rent of this place covering both the mortgage and the other rent. Scary, that.

More synchronicity

[pinkfish.livejournal.com]

I just came from a party, where one person mentioned his intent to move to Portland (OR) next year. Another person had lived there for 13 years, and sung the praises of the place. Se we played a little parlor game, in which everyone in the room thought briefly about what it would take to move to Portland, OR, and whether this would be a good move right now.

Re: More synchronicity

[magid.livejournal.com]

I've heard really good things about Portland, including a wonderful Japanese garden, a bounded city, and Powell's bookstore, plus a family I know. I've never lived in the U.S. outside MA, though, so I suspect my inertia is large...

Were there interesting things mentioned? Perhaps I shall go to Portland on vacation next year...

[teddywolf.livejournal.com]

Sorry, I couldn't afford to live downstairs :-) Besides, we need the space at our current place.

It does mean, though, that if you still have a mortgage and haven't refinanced it that this is the time to do it. Interest rates are low.