A friend of mine bought a house in 1990 for 154k(clairemont).
It probably dropped to 110k. It went back up to about 450k in 2005. Now it would go for 350K. His taxes are low and he has a tax write-off on the palty sum of a mortgage that is left since he refied to a 15 year mortgage several years ago. His payment has been close to rent even after refying to the 15 year(I am not sure of the exact details). He will only have taxes and insurance after he pays his mortgage off. How much money did he lose? I am against drastically over-paying myself but just wanted to add this perspective.
VC is not down nearly as bad percentage wise. He might get there but I think we can’t make much of a case against his situation yet except that his aquisition price was at least 50K too high.
