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Pam Graham
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I enjoy working with first time homebuyers because it's kind of like watching your kids grow up and see new things. You get to see it through their eyes
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Pam Graham answered:
Hi Redter72!
Let's look at your equity for a moment. Let's say you bought your house for 200k, but now it's worth 150k. Let's also say that 2009 is the last year for a decline in value (I'm not saying it is just using it as an example) and in 2010 we start to see a 3% increase in values. So in 2010 you're value would increase by $4500. To make it easy and not have to figure out what the increased equity amount is each year let's just divide $4500 into $50k and that will tell us how many years it would take before you would see the value at 200k again. Which would be approximately 11 years. Of course my example above is not perfect, 3% appreciation every year isn't guaranteed, we could see more or less. We may not even see a positive appreciation in 2010.
Is it worth renting every year and waiting for the values to go up or break even with HAP now and move on with your life???
Let's look at your equity for a moment. Let's say you bought your house for 200k, but now it's worth 150k. Let's also say that 2009 is the last year for a decline in value (I'm not saying it is just using it as an example) and in 2010 we start to see a 3% increase in values. So in 2010 you're value would increase by $4500. To make it easy and not have to figure out what the increased equity amount is each year let's just divide $4500 into $50k and that will tell us how many years it would take before you would see the value at 200k again. Which would be approximately 11 years. Of course my example above is not perfect, 3% appreciation every year isn't guaranteed, we could see more or less. We may not even see a positive appreciation in 2010.
Is it worth renting every year and waiting for the values to go up or break even with HAP now and move on with your life???
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