Dream House or Nightmare?

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  • Posted By: kwh13 @ 10/18/2007 2:13:43 PM

    The problem with real estate speculation is exactly what this article is about. If the Elliots were REALLY interested in a garunteed return, then they should put their $750k into a CD and they could have all the garuntee in the world. They didnt - they built a house in order to make a killing when the house goes up in value - theres the rub. A speculation home is exactly that - a speculation that the value will go up. It isnt any different than investing in stocks. I build spec homes, but I would hardly ever invest EVERYTHING i have into the house and I surely would never be disappointed at ANY profit margin. As long as you can walk away from a deal better than when you went into it, count it as a lucky day. I get just as excited about making 8% profit as I do in making 45% profit on my homes - maybe because I like what I do and as long as I can support my family with my earnings - then I'm happy. I also think anyone that pays $750k for two acres of drained swamp and $120k worth of building materials is a numbskull and should be punished by the market - which in this case seems to be the situation. This market meltdown isnt really a meltdown, its a comeback to reality - The market problems seem to concentrate around the east and west coast, so naturally when New Dork, Miami and Los Angeles have a problem, it is instantly assumed the rest of the country is falling apart at the seams because folks from around there vast intellectual superiority to the rest of us country folk in the middle of the country who arent losing our homes hand over fist and crying about not getting a double digit return on their gamble that they overpayed for.

  • Posted By: fredj7499 @ 10/18/2007 2:13:22 PM

    I see people donnot remember

  • Posted By: coverholtzer@sbcglobal.net @ 10/18/2007 2:13:09 PM

    this is just the same all over the country.. our home went from a million value to about 500,000. Even at that we could not sell it if we wanted to. Just sit tight, enjoy your home and sell it when the market goes back up sometime in the next 20 years.

  • Posted By: oscmont @ 10/18/2007 2:12:49 PM

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  • Posted By: Ilovethebeach @ 10/18/2007 2:11:41 PM

    One word comes to mind when reading this article 'Entitlement". Why should we feel sorry for someone that: lives in a $750.000 home, is a contractor , inwhich I am sure knows that there is no guarentee that appreciation will follow any type of investment, especially with our current political situation, in this counrty you make choices, you win some you lose some, we cannot always recover our losses, especially in the real estate market. It is difficult to feel sympathy for any individuals that live this extravegently, when there are so many people having to work 2-3 jobs just to pay the bills and pay for health insurance.

  • Posted By: SanMoo @ 10/18/2007 2:11:37 PM

    Mr. Elliott is not a very smart contractor if he just now thought that the market might be on a downslide! Now, a school teacher or some other unrelated position I can understand, but a contractor!! Oh, Boy.....Contracting and Real Estate go hand in hand....I know my dad was a builder!! I know I wouldn't want his advise on building a home! Ha!

  • Posted By: Newsaddict31boston @ 10/18/2007 2:09:36 PM

    For those thinking this thing will turn around soon, figure this....If the cost of housing rose
    %50 from 2000-2005 and durin gthe same period incomes rose I dunno %10-20, what makes you think we (my generation of late 20s early 30s) will be able to afford your homes? Sorry, I earn a great salary but will not be buying property any time soon. The affrodable homes are worth it and the homes I would buy are still WAY too expensive despite the recent down turn in teh market. Homes owners need to get a grip on reality. Your home is only worth what my generation is willing to pay, and its not nearly as much as you think/wish!

  • Posted By: morgand25 @ 10/18/2007 2:09:31 PM

    The family has lived in the house for only one year and they are looking for an appreciation? Homes are long term investments. When they sell their dream house in 15 to 20 years I have a feeling it will be worth a lot more. The Elliotts are idiots for worrying about such things and this article has no purpose.

  • Posted By: graceylou @ 10/18/2007 2:09:26 PM

    Seems like Roger just wanted to spend his wifes inheritance, couldn't take that she had more money than him so he blew it. they don't say they have children or even considering children? Why would you build a house that large? To show off if you were in to investments and flipping houses you would have started smaller paid back your wife and w/that money then you build a home for free basically and still have cash in

  • Posted By: junebride03 @ 10/18/2007 2:09:02 PM

    WHY in the world is this even a story, so what if his home has lost a little equity? If his savings is intact and his financing isn't needing any adjustment, he's just being a big rich crybaby. Yeah, my house has lost a little equity of late as well, but I know eventually the market will come back and so what if he has to stay in the house a few more years than planned to ensure he will get his investment back. Newsweek disappoints me with this story, nothing newsworthy here.

  • Posted By: BobbyR454 @ 10/18/2007 1:21:26 PM

    The problem is that too many people believe their house is an investment instead of a home. If these people would purchase a home that they intend on living in for 20 to 30-years, this mess would not be going on. Instead, they plan to be there 3-years in a $750,000 house. They shouls see what $150 to 200,000 will buy them in the Houston market. A $750,000 house would be a mansion.

    • Posted By: thriftygal2001 @ 10/18/2007 2:09:02 PM

      Honestly, I think I'm more offended by boo hoo comments than the 'poor little rich man' as someone called him. I'm a single mom making around $35,000/year and I too was saddened by the housing market when I sold my home this year for less than it was valued at two years ago when I had to pay off my ex-husband. Please don't use single moms as the standard of poor people who can never own a home. If you're in the housing market for the long haul... just like the stock market, there will be good years and bad years... if you're always invested in the housing market even if just with your primary home, it should be average out to a positive investment in the long run. Even if you unfortunately just bought your first home a few years ago when prices were higher... it's a bummer (like investing money in the stock market when it's high just to see it drop). However, gradually those higher values will gradually return, it might just take some time (just like the stock market a few years back... I felt sorry for those retiring right when values were low, but for the rest of us, it recovered just fine). The only exception... true some of those bubble markets where houses sold for 10 times what it would cost to build a similar home 30 miles away... I'm not sure they can recover as with telecommuting options abounding and more people willing to take a lesser paying job to live in a less expensive community, less people will spend that kind of money to live in a particular location in a particular city.

      In my opinion, anyone who wants to can be a home owner, we all can benefit from a good market and lose in a poor market. Anyone who thinks they absolutely 'can't' be a homeowner and they don't have extenuating circumstances like a disability, an unexpected death in the family, etc... is probably wrong or not willing to move it they're in Seattle or a few other areas. I bought my first home a year out of high school in the 1990s while making less than $6/hour. True, it required having a roommate, it required not having cable until 10 years later, it required driving an old high mileage car that I paid for with cash, etc... but it was completely possible and set me off on the right foot so that that I now have a higher net worth than most people 15 years older than I. True some markets are tough to get into and it could require moving, but there are a lot of wonderful places in the country with affordable housing market. On the other hand, I wouldn't keep all my eggs in one basket. I wouldn't solely invest in housing the same as I'm hesitant to solely invest in the stock market now that my home is sold.


  • Posted By: graceylou @ 10/18/2007 2:08:35 PM

    Seems like Roger just wanted to spend his wifes inheritance, couldn't take that she had more money than him so he blew it. they don't say they have children or even considering children? Why would you build a house that large? To show off if you were in to investments and flipping houses you would have started smaller paid back your wife and w/that money then you build a home for free basically and still have cash in the bank

  • Posted By: billw8 @ 10/18/2007 2:05:41 PM

    Nothing like a crybaby builder who can't understand the real estate market.. Sounds like your in the wrong line of work. Mabie you should sink your mony in baseball cards or those plates with Elvis on them you get on TV. Get a life you ***.

  • Posted By: seekingworldlywisdom @ 10/18/2007 2:05:06 PM

    I do not really like Kiyosaki but he really nailed it down by saying

    When you in (money/cash flow) trouble, Liability Eat You, Asset Feed You!

    But, our CPA, CFP, bankers, realtor, mortgage broker will try to tell you - Your house is your biggest investment (asset). Wrong, wrong, wrong! A business is an asset, Coca-cola stock is an assett, Berkshire stock is an asset, they goes up value as time and do not take your money everyday.

  • Posted By: greedkills @ 10/18/2007 2:04:46 PM

    I agree with the rest of the posters, thsi is guy is a big cry-baby. Buying a hose worht 750,000 on monye he didn't even earn and then whining about it not being worth more. Typical greedy elitist that has no idea what real problems are. If he had any moral fiber he would have bought a house worth half as much , invested half of what was left over and then given the rest to charity. BOO-HOO, woe is me he cries . . . grow up!

  • Posted By: Ilovethebeach @ 10/18/2007 2:02:56 PM

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