Even if your price shrinks by 10 percent. Your roof line is not 10 percent smaller. Your Children do not eat in a kitchen that is 10 percent tinier. Your tax deduction is still the same. Your flowers do not look 10 percent uglier. SO at the end of the day a blip on the screen MEANS NOTHING to your quality of life in the home, unless youmust sell. And given that prices go up you will be fine. Isn't money used for quality of life? That's what i tell folks

My grandmother said something along these lines the other day. At which point she pointed out that when she was purchasing her first house with my grandfather back then they bought because they needed a place to live. It was an investment in their future a place to raise a family. Nothing else. I think most people have forgotten Maslow's needs which included shelter. It's a basic need.

Gosh, you are so right.  I've talked about this often.  Real Estate IS an investment, but it is not ONLY an investment.  As you mentioned, it's also our shelter.  But one of the main foundational financial assets in our entire financial picture is our home, and people seem to forget that these days.  Great post!

Hopefully that will change as we see more appreciation in homes. It's sad that people cannot look more long term.

"God, are we forgetting why we buy a home in the first place?" - but that's how things have changed.  I'll bet if you were to poll buyers who have purchased homes in the past 5 years, most would tell you they were only planing on making a short term investment.  A home purchase is no longer an emotional, long term transaction for most Americans.  I hate to say it, but for some people who are making astronomical mortgage payments with adjustable rates and deferred interest/negative amortization - without equity in the forseeable future, it may be in their best interest to just walk away. 

Bill I haven't heard that reason for a homeowner losing or choosing to default on their loan, I would imagine that a lot of those homeowners may  not have had  buyer representation & paid too much for the home in the first place, didn't have a down payment when they bought, so do not have anything to lose. Or maybe they are just bored with the home, can't sell it and want to move on. They just let the house go into foreclosure. There is more than 1 down side to that decision. For someone who is considering this as an option to remember it is harder these days to find someone who will rent to you with bad credit. I tell my buyer clients who are not sure if buying is for them "You are going to pay someone's mortgage either yours or your landlord's,which would you rather do? There are only three choices to make, buy, rent or be homeless, well maybe four live with mama & daddy. Only one of those puts you in a position of return if you maintain the property, paid market value or below when you bought it, have not refinanced and taken all the equity You can either have it now or when you sell, your choice. There are always exceptions to anything of course as some home values in some areas have sky rocketed other areas have taken a dive. Some of those areas have been hit by natural disasters, or some other unforseen event and that is really tough to swallow. I guess the next best reason besides it generally being an asset is that it gives you freedom, freedom to put your own stamp on it and no one has to like it put you. Along with freedom comes risk, & responsibility.

Sally in Greenwood at RE/MAX Action Realty Lake Greenwood SC Real Estate

no? well check this out http://www.youwalkaway.com/

bill