The Used Car.

By
Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

Most know that the very first thing that happens when you buy that used (or new, for that matter) car off the lot, is that it loses a ton of value.  But we buy that vehicle anyway because we need it to get to work, take the kids to school, go shopping for food, and run around this great big world without having to utilize our feet anymore than advocated by our favorite podiatry artist.  Heck, it's plain convenient in the world in which we live.  We know it going in, buy it, and meander along the merry trail that is our life.

Has buying a home been any different in recent years?  In reality, probably not.  However most of history and especially years prior to the proverbial bubble getting a nice dose of a needle, told us that buying a home was an investment.  Well, in comparison to buying a vehicle of any kind, I maintain that buying a home reeks much larger in the aspect of returns.  But is that really why we bought it?

I'll share my story and try to keep it pithy, parsimonious, and pragmatic.  I bought my first home in 2006 under peculiar circumstances.  I was roomies with a guy I worked with who signed a lease to purchase agreement and then bailed without any notice.  And people wonder why silver lays upon my locks ...

Left with Utility Bills that would make the comforts of Death Row (and electrocution) look rather cheap ...

I worked out an agreement with the owner then to buy it myself in a year and I did.  I made every cardinal mistake in buying the place (no inspection was my every cardinal mistake) and to the races I went.  If I ran for Political Office manana, all bridges (and floods) over troubled water I've had would be found.    It's still the proverbial work in progress, as I liken myself to the Yogi Berra of Homeownership ... it ain't over, til it's over.

I ask myself daily of why I bought this house.  It was affordable and I didn't know about the other things that would ever get in the financial way of that reality.  If I was renting, I would have experienced the same situation.

But I put some time and money and time into this abode.  Was it an investment?  At the time, I can honestly answer that I felt it was.  But that is not why I bought it or am still here.

This is my home.  I need it to get to work, take my kitties to the playground, store food for my shopping, and live comfortably in this world without having to utilize a tent and yet another Oliver Stone reference to how bad Capitalism can be.

They bailed out banks, introduced HAMP, and have kept interest rates lower than my own IQ after a night of drinking with a former B-Music Celebrity.  Yup, I drank Hootie of the Blowfish under the freaking table.

Is any of that helping?  I'm not sure, perhaps.  But I don't really care.  Because it's not about what "they" do in regards to what is going on.  It's about what I do.  And if I lose this abode tomorrow, maybe I'll be out to sea chanting "Wilson" like Hanks from Castaway ... but I won't be doing it without ensuring that my used car won't be one left alone just because the value went away in Zillow's Mind. 

Nope.  The value is why I bought in the first place.   As hard-core in spirit and in reality as I like to pretend to be, having a home is a nice thing to have.  I want that ...

... used car.

Comments (12)

Stanley Stepak
Howard Hanna - Avon Lake, OH - Avon Lake, OH
Realtor - Avon Lake, Avon, Bay Village, Westlake,

A home is a home.  It is a necessity and there is no way around it unless you prefer to live in hotels, motels, tents, and used cars.

Jan 17, 2011 03:40 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Stan - If I didn't have a family of sorts, I could deal with tents and such.  As it is, I kind of dig the home thing ... Carnivals don't interest me anymore.

Jan 17, 2011 03:42 PM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Jason - I've said it before and I'll say it again, "a home is not a piece of stock - IT'S YOUR HOME!"  While I'm not going to bash anyone who strategically chose to walk away from their home (as opposed to the ones who couldn't afford to keep their home), I just simply don't understand the whole "it's no longer a good investment" mentality.  A home is where we live and make a life in - period! 

Jan 17, 2011 03:57 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Jason.. awesome post and it all makes perfect sense... I think so many were buying homes from 2003 to 2006 other than for that reason that it was suppose to be a home, a long term investment. Many so values rising quickly and thought.. I'll buy it now and sell in a yr, making a profit. But wait... 2 things.. I will need to live some where else after that... and.... drum roll.. what happens if I get stuck with this house.. Anyhoo... again, excellent post. A home should be just that, a home... and some sort of investment, even though it hasn't worked out like this in the last 3 yrs. great analogy using used cars and a new home..

jeff belonger

 

Jan 17, 2011 03:57 PM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Jason...Yes, you are a family man.  We're all happy about that.

Home is our shelter and many other things.  I wrote a post this month about our house is our home not a piggy bank.  Hope you get more comments than I did because it is important for folks to realize that is really what we are selling them, a home.

Kate

Jan 17, 2011 04:40 PM
Liz and Bill Spear
RE/MAX Alliance 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Alliance Cincinnati & Dayton suburbs

Jason, So much more than an organized collection of wood and nails, home IS where the heart is, where you make the memories that define the rest of your life.  If we're lucky, it's smooth, and maybe it increases in value, but it's not the primary reason to have and to hold, til mortgage do you part :)

Jan 17, 2011 10:35 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Home Ownership:

1.   Pride.

2.   Self respect.

3.   Comfort, finical, physical and social.

4.   Community.

5.   Responsibility.

6.   Stability,

7.   Security.

8.   Nesting.

9.   Equity, yes equity! No matter what the market does the magic of amortization means equity always returns!

Jason,

No comment.

Bill

 

Jan 18, 2011 06:46 AM
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

It's a simple matter to me, Sardius. A man needs a place to lay his head at night. A place to eat, dump, and screw comfortably. Home is where that is. Turning that basic premise into anything else is surely a recipe for disaster. 

Oh, and the used car analogy? Quite apropo.

Jan 18, 2011 01:28 PM
Jennifer Monroe
Savvy + Company Real Estate - Charlotte, NC
Real Estate REALTOR®/Broker in Beautiful Charlotte

LOL @ William.

No... i mean LMFAO @ William!!!

Jan 18, 2011 01:46 PM
Alexsandra Stewart
Remax equity group - Portland, OR
Broker - Portland Oregon Real Estate

Hmmm -- this doesn't explain it either -- but I like the post -- and love the song!

Jan 18, 2011 05:36 PM
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

What's in a name? That which we call a home; by any other name would give such comfort...

Jan 18, 2011 08:20 PM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Jason, I always tell people the home they live in is NEVER an investment, contrary to everything you hear. I stick by that story till this day.

Jan 19, 2011 02:57 PM