Skip to main content
No. of Recommendations: 0
Joel, while generally I agree with you about asset transfer on the paying down of a house, that mindset can also get folks in trouble. While my house has not gone down in value, it has increased only about the equivalent of 1% a year for the 6 years we've lived here--less than $10,000. AND we've put over $20,000 of work into it (broken sewer line, new furnace, moved water heater so it was legal, lead paint abatement, new windows).

Yes, in high markets and maybe with a different house, this would be an appreciating asset. But so far, our house is costing us more money than it's going up in value!

Not that the house is in bad shape, it's just a flat market around here and we have a 100+ year old house. We're committed to paying down our mortgage and do find it part of our retirement strategy (no mortgage to pay). But I'm not so sure that once we pay off the mortgage we could sell the house for much more than the total amount of money we'd spent on fixing it up and interest payments.

And housing boom that is declining and the problems folks are having with sub-prime mortgages shows that there are plenty of folks who are getting upside down on their houses.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.