Dream House or Nightmare?

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  • Posted By: laruedae @ 10/18/2007 2:30:37 PM

    So, the house has plenty of equity and they are filled with doubts??!!! ...as long as they are not filled with DEBTS they should be fine. I mean, how greedy can someone get?? They have everything anyone could want "materialistically" speaking and they can't even relax to enjoy it...

  • Posted By: rogerally @ 10/16/2007 10:23:26 PM

    This is Roger. It is interesting to see how many posters made assumptions. We did not buy to flip and we did invest a great deal of our own money. My wife is well to do. I'm an average Joe who got lucky and married well. What would you do if you were me in 2005? You would have recommened to your wife that you invest in the safest investment of all - a home. I did exactly what your would have done if you had the opportunity. And no one has a crystal ball. Remember I'm an average Joe , not rich, and a whole lot less rich today.

    • Posted By: jgaynor @ 10/18/2007 2:30:35 PM

      Joe, may you and your Wife continue to enjoy your home. And you're not average. It takes vision and courage to do what you did. There is absolutely nothing wrong with building a desired home. I for one, am tired of efficiency bathrooms, etc. I'm looking forward to a home of my desired. My prayer for you and otthers in this market is to be grateful for the home. Thank God for the decision, because all visions have their appointed time (in this case, it's increase). I don't think your decision was bad. Buyer market.. Seller market... Sideway market... So what? At some point it will reverse-and it will. Builders are still building and homes are still being sold. Have you heard of forced appreciation? It exists. It's a term I learned from Donald Trump's newsletter. His homes literally sell like "hot cakes". There is a buyer for your home when the time is right and you'll appreciate having built it. Every thing we do has a greater purpose attached to it.... Ta-ta for now and Abundant Blessings to you and your wife... :)

    • Posted By: networth @ 10/17/2007 10:16:16 AM

      Roger-Thanks for stepping up and admitting your mistake. Even though it may be too late, you and your wife should read up on the difference between "rich" and "wealthy". I myself am neither. However i have read some very interesting books on how wealthy people have a totally different perspective of money, investments and especially spending. Best of luck.

    • Posted By: mmshaw61 @ 10/16/2007 11:48:30 PM

      Professor Robert Shiller of Yale makes a strong argument that houses are one of the worst investments. Since 1890, the real rate of return on a house is near ZERO after factoring in inflation, interest, and maintenance. We are only seeing the beginning of this collapse in house prices. The outsized returns gained during any bubble (i.e. Internet bubble of 1990s) always vanish and investment returns regress to the mean. Check out how many NASDAQ highfliers of 2000 are still below their peaks after seven years. Housing is no different. We could be looking at declines for the next 10 to 15 years as the returns on houses regress to their historical means. Do a Google search on Shiller and read some of his articles. If you've bought a house in the last few years at the top of the market, good luck.

  • Posted By: Skybaby27 @ 10/18/2007 2:30:17 PM

    Gee, poor guy. Having to suffer in a $750,000 house in a beautiful gated community in florida. my heart goes out to them. Too bad they won't be able to make all that money off the property to buy a bigger one. its just so sad.
    hint of sarcasm picked up on anyone?????
    this guys views are whacked out!!! i live in a trailer and am just happy to have roof and a job at this point in the game!! we're headed for 3rd country status within the next millenium and he's worried about making a profit on a mansion. geesh!

  • Posted By: jedr @ 10/18/2007 2:29:33 PM

    Poor babies, I feel so horrible for them, their house is not appreciating. Truthfully, they should be embarrassed about this article. They are living in a home that most people can barely dream about, much less ever own. They are losing value when many thousands of people are losing the only place they have to live in, and in some cases, are ending up homeless. You must be joking by making them sound like poor victims. At least they can afford their "healthy" lifestyle, and wait for the market to eventually turn around. The overwhelming majority of homeowners, especially those with bad loans, don't have that luxury... Shame on you...

  • Posted By: scar0013 @ 10/18/2007 2:04:35 PM

    This story makes we want ot puke. The poor "dream home owners" have plents of equity, no debt, but have lost a little money. I am so sorry that they have to live in there million dollar home.
    Is the editor at NewsWeek an idiot? What did Daniel McGinn do to get this article published? I got some "news" for you and your editor. There are lot of Americans that live within there means and have lost money on there home.
    Here is a story for you... New couple buys a townhome, with the thought that in 2-3 years they will upgrade into modest single family residency. The market falls apart they are upside down on the mortgage and will have to bring $15,000 to close.
    See since they bought there townhome they have had twin girls and have no room in there home. And guess what they can't blame this on high-risk adjustable mortgage. They have a 30year fix at 6.25%. They read the fine print and still are up ____ creek. IS the government going to help them. No the goverment only helps people that can't think for themselves.

    • Posted By: Texxxxxxxxxx @ 10/18/2007 2:27:21 PM

      Same story...if you couldn't afford it then why did you buy it.

  • Posted By: tallulahsugar @ 10/18/2007 2:26:26 PM

    I guess I just do understand what difference the market means. They supposedly love their home, have all the comforts that they need, can afford to keep the home....Hello, what are you complaining about? Go chat with some homeless man or family.

  • Posted By: Harleyrose68 @ 10/18/2007 2:25:16 PM

    Mr Elliot- you sound very greedy-cry me a river.... too bad you built something that has depreciated-everyone who lives modestly saw this coming except you ?? Oh please....just another show -off home people really don't need. Sure we would all love something like that but in reality most folks know its not possible or required . We live happily with out the "show" take a bow, your curtain has fallen.

  • Posted By: tallulahsugar @ 10/18/2007 2:24:47 PM

    Enter Your Comment

  • Posted By: tallulahsugar @ 10/18/2007 2:24:36 PM

    Enter Your Comment

  • Posted By: beachluvnblonde @ 10/18/2007 2:24:22 PM

    What was the sense to printing this? This is an "oh well"..... its news worthy. You should lose your job. You stink.

  • Posted By: Missionman @ 10/18/2007 1:35:05 PM

    I'm recently back from Honduras, working with families living in one-room shacks with dirt floors and no electricity. It saddens me to see what we complain about in this supposedly "rich" country. Use some of your wealth to help others, and appreciate what you have!

    • Posted By: rogerally @ 10/18/2007 2:01:02 PM

      Hey Mission Man,

      Ever been to a communist country or an Islamic country to do "Missions"? I have. And the risk was real. Honduras? No risk. And I have given to others both here and abroad for well over 20 years. Don't judge me because you have no idea what a servant I've been all my life. I???d still rather be handing out New Testaments in a mosque during Ramadan near Syria. Yes, I did that. Or telling then enslaved (1989) Czechoslovakians about Christ while machine gun laden stood soldiers all around. And for that matter I???ve done plenty of manual labor in the Caribbean and South America too. And if God chooses to bless me now, that's His choice.

      • Posted By: jdyule @ 10/18/2007 2:21:45 PM

        Who is resorting to name calling here??? People are just reacting to your sad story, sir.

  • Posted By: later da @ 10/18/2007 2:21:28 PM

    A house is a home to live in and enjoy. Create memories for your family. The sooner this generation of irrational excuberance will embrace this the better. If you think you have problems now just wait. Because of all of this and a war on Iraq you are going to see an economy deterioration along with a healthcare crisis( kiss that medical device job goodbye) and taxes pinching your very soul.

  • Posted By: oscmont @ 10/18/2007 2:18:38 PM

    Here is a man that has so much and lacks the real understanding of value, what happen to the statement of family comes first before the buck and to have the ability to have your cake and eat it too..PLEASE GROW UP...AND BE A REAL MAN AND LOOK AT BUSSINESS AND LIFE AS A CUP ALWAYS HAVE FULL INSTEAD OF HOW THIS STORE ABOUT YOUR WOES MAKE YOU SOUND.

  • Posted By: Century21superstars @ 10/18/2007 2:18:30 PM

    Just like comments before, stop crying. Newsweek must not have much to post if they had to inject these tears. Who builds a primary residence and thinks about selling it in a year? Sell your primary in less than a year and you'll suffer more than a slump in the market. 5-7 years and you'll be embarrassed about this article. If its an inheritance, give your respect and cherish it! You can make payments and live comfortably, so do it quietly!

  • Posted By: twistedsister1027 @ 10/18/2007 2:12:34 PM

    Dear Mr. House Poor: Ok, so your new custom built McMansion has depreciated recently. A house is supposed to be a home for a family, not just an investment, though it is that, too. So the market is currently down, especially for McMansions. Live in your home for about 10 years and you'll find the situation different. Hope you're not so house poor that you can't afford furnishings, curtains, nights out, etc. Some folks are. If you aren't, you are lucky. I mean, get real here! Everyone with common sense knew that the housing market was going to burst; it's the nature of very basic economics. It'll go back up but it may take some time. So live in the beautiful home and enjoy what you have. When you can, add more amenities but only if you and your family enjoy it, e.g., a pool or gym. Suck it up and make it your home!

  • Posted By: Ladida @ 10/18/2007 2:16:37 PM

    What's the worst case scenario here...they need to stay in their $750K house? Waaaa.....I feel terrible for them!

  • Posted By: single momx3 @ 10/18/2007 2:16:36 PM

    be thankfull lost my house in this nightmare of dirty dealing in the mortagage problems. now goverment is trying to help people i did not have a large home just a small nice home that my childern grew up in my story is much more . be happy or get a fixed rate. i was a single mom after my husband left us after fifteen yrs of marriage it goes own . i worked did not do welfare. so it goes

  • Posted By: robert1049 @ 10/18/2007 2:16:35 PM

    our homes should be a place to live and enjoy our families, build dreams and love, not for financial gain, for that we work, invest and save. to waste money buying or building something you cant afford, just for show is ridiculous, but thats what we teach americans to do. lease mercedes benz, buy 1000 pocketbooks and have no cash! keep spending what you dont have america, and the rest of the world will continue to buy us!!!

  • Posted By: pearshaped @ 10/18/2007 2:15:59 PM

    The good ol' United States of GREED. If you can afford to spend $750k on a bloody house and only lose 10% of it's value- now your 29 room "shack" is worth a mere $675k...you expect the rest of us to feel for you? Gotta be out of your bloody tree!

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