Can a house over 100k underwater still be considered an asset?

[espo1357]

When you consider that you live in the home, that you have a tax deduction, that you will most likely have equity in ten years...

Just wondering what most of you are thinking on this.

I am in a situation where I am paying over 500 for the BK 13, and my home is under 100k, in a job that is going nowhere.

I can most likely convert to a 7 soon (my job is going nowhere fast, and I am likely to get let go within the next year).

Is it worth fighting for this?

BTW, I love the home!

Thanks!

[tobee43]

well...we were in our house for 33 years and faced with the same questions...after all the fears and the tears...having to shelf all the emotions....we had to sit down and finally make a sound business decision for ourselves...which included surrendering our house after those 33 years.

as i have stated on numerous occasions...it was by far the best decision we made. home is where the heart is...the memories you have there...believe are in your heart...not the house.

best of luck on whatever you decide...but i think you need to make your own decisions on this..only YOU know what's best for you and yours...

keep us posted!!!!

[mickeyme]

We are in the same situation. Before we made any decisions we spoke to our CPA and Financial Advisor. They helped us run all the numbers so that we could make a decision that made the most sense and allowed us to work towards a secure financial future. Our situation was not as clear coated as we thought so I am glad took the time to speak to them because now we have plan.

Good luck.

[espo1357]

Thanks for the feedback.

I am sure I can live in the home "rent free" for at least 6 months too if I decide to let it go.

This 13 is just a mess, and I can just convert to a 7 when the job is over and go back to school and be done with it.

That's probably the right move, but I hate to just make a quick decision on something like a home that I like and a home that will be worth something in about ten years (I am still in my 30s, so that isn't too bad).

[AngelinaCatHub]

Thanks for the feedback.

I am sure I can live in the home "rent free" for at least 6 months too if I decide to let it go.

This 13 is just a mess, and I can just convert to a 7 when the job is over and go back to school and be done with it.

That's probably the right move, but I hate to just make a quick decision on something like a home that I like and a home that will be worth something in about ten years (I am still in my 30s, so that isn't too bad).

'Tobee43' gave a great representation of value. In this respect, forget ten years, a house was NEVER an investment. It worked out that way some time ago by shear luck. Today, a house is a building now being occupied by rodents, and homeless and "undocumented" people as in our area, there are literally hundreds of vacant and abandoned houses. Those who wish to list just to move have a rude awakening.

Years ago, young folks paid for a house into their sixties, sold and got a fortune and went to FL to purchase (and I remember) a $7500 dollar block house in a real nice place. (that house now worth 170K before all hell broke out). A house will never become an investment again.

It never was supposed to be. Tobee said it best, a house is not a home. A tent could be a home, if peace and joy abound in your family of husband and/or children. It is what is in your heart that makes a house a home. Two different things.

Live in your place as long as possible. For free if going 7. What is going on now in our government and all the confusion of the banks, just may put your house into a situation where in time it may become possible to reestablish a payment plan for you to keep it under these poor times. Wait it out but lose your worry. Things work out in time. Always have. 'Hub

[CCsAreEvil]

A house will never become an investment again.... It never was supposed to be.

I disagree. I don't fully agree with houses becoming investments but right now, investors are buying all the houses in the Phoenix metro area at amazingly low prices. They are paying cash. Personally, I still see room for house prices to go even lower (most likely but I could be wrong). However, for the LONG term.. and I mean "long", prices WILL go back up. It will just take several years.

[debee]

I think it's possible to love a lot of different houses, especially when some of the monthly payment actually goes toward principal.

[espo1357]

'Tobee43' gave a great representation of value. In this respect, forget ten years, a house was NEVER an investment. It worked out that way some time ago by shear luck. Today, a house is a building now being occupied by rodents, and homeless and "undocumented" people as in our area, there are literally hundreds of vacant and abandoned houses. Those who wish to list just to move have a rude awakening.

Years ago, young folks paid for a house into their sixties, sold and got a fortune and went to FL to purchase (and I remember) a $7500 dollar block house in a real nice place. (that house now worth 170K before all hell broke out). A house will never become an investment again.

It never was supposed to be. Tobee said it best, a house is not a home. A tent could be a home, if peace and joy abound in your family of husband and/or children. It is what is in your heart that makes a house a home. Two different things.

Live in your place as long as possible. For free if going 7. What is going on now in our government and all the confusion of the banks, just may put your house into a situation where in time it may become possible to reestablish a payment plan for you to keep it under these poor times. Wait it out but lose your worry. Things work out in time. Always have. 'Hub

It is a hell of a home, or house, or whatever, in a great neighborhood. And I can afford it easily, as it is about 30 percent of my gross.

However, it is under. And that is just so dam annoying.

When I first bought it, I used to send out at least an extra 1k to pay down the principal. But, now I just send in the min.

The decision to vacant would have been made (easily) if the home was a dump, and the neighborhood was full of losers.

Its a good problem to have, I guess.

[Flamingo]

One has to decide if they want to pay for someone else's investment and rent or if they want to or can afford to take care of the home they are in as to upkeep and stay where they are as housing values again will slowly rise as time goes on. It's a personal decision that can be hard to make due to income, job, age, how close to retirement, what will happen 5-10 years from now, etc. No one has a crystal ball.