Day 98 Buying A Home Is Not Always A Good Investment
Mom and Dad bought a house and kept it for 5 years and they are trying to sell it now.
They put $10,000 of their own money as a down payment for the house.
When they sell the house they will get about exactly what they still owe and can kiss the $10,000 goodbye after fees and commissions paid.
You see, it costs 6% to get out of a house using a realtor and it's real hard to sell a house any other way.
So your house needs to go up 6% while you live there just to break even
That sounds like a bit of a gamble. If the market goes down 5% or some amount you add that to your realtor commission and your are at a double digit loss.
Sorry for the rambling, but just wanted to say the moral of the story is I wish mom and dad had rented for the past 5 years and would still have their $10,000, plus all of their repairs done for the past 5 years, instead of losing their money by owning.
MomWe are just glad to get out of the sucky market.....yippeeeee!!