[121804]

Dream House or Nightmare? | Newsweek Voices - Daniel McGinn | Newsweek.com

And people wonder why there are the problems that there are in the housing market?

This particular couple is from Palm City, FL.

I feel little to no sympathy for them.

[SKB]

Those people are a joke, talk about blowing away your inheritance. I am sure that the Dad would turn in his grave to know his daughter squandered away his life savings.

Easy come easy go, wait until that home is worth 300K.

[Sunandsand]

I don't wish bad on anyone but it was what it was....a terrible financial decision. You don't build a $750,000 in an area where median incomes are $65,000.

But if they have their health and their children's health they should be able to pick up the pieces and move on older and wiser. They are still far luckier than many people, no matter how much money they eventually lose on that house.

[jhlcomp]

The Elliotts are fortunate that they are not "sub-prime" victims, rather that their house is losing value. Their personal situation is solid unlike most out in the market place.

Yes, their house is losing value, but they are not in the market to sell. While the market turns south for a while, it should reverse itself over the next 5 - 10 years. This may seem like an impossible time to wait. Everything is cyclical - as with the stock market - things go up and they go down. The Elliotts will simply have to wait for things to shift at which time they will be able to sell. . . if they ever want to given they have the home of their dreams. :-)

Sometimes thinking "big" isn't always the best route - I would have been more conservative.

[tallrick]

Seems like self-centered people to me. If you buy a new car, boat or other items, they depreciate in value. Why would a NEW house be different? If they could afford to build it and live there, what in the world are they complaining about? Seems they would be glad that falling property values give them lower state taxes.

[nitroae23]

Originally Posted by tallrick

Seems like self-centered people to me. If you buy a new car, boat or other items, they depreciate in value. Why would a NEW house be different? If they could afford to build it and live there, what in the world are they complaining about? Seems they would be glad that falling property values give them lower state taxes.

Cars,boats(an acronym for Break Out Another Thousand)ARE depreciating assets,homes,until recently,weren't,but due to the stratospheric runup in values,will be for several years,gotta agree with you Rick,you could have told these guys forever the decisions he/they made were wrong,that their inheritance should be diversified into many asset classes(stocks,bonds,etc.),in the end,they'd make the same mistakes,well,they own 'em!

[Lilybeans]

Too bad for them-my heart bleeds. What a crybaby.

[Brasstec]

Why does it really matter if they can afford it? I would just enjoy living in my dream home.

[wacahootaman]

Inflation will come roaring back. And when it does, prime real estate will be seen as a hedge against inflation.

The dollar is tanking. Maybe he could sell it to a European. There were 85 Euros to a dollar in 2000, now there are 142 to a dollar.

[Sunandsand]

Originally Posted by wacahootaman

Inflation will come roaring back. And when it does, prime real estate will be seen as a hedge against inflation.

The dollar is tanking. Maybe he could sell it to a European. There were 85 Euros to a dollar in 2000, now there are 142 to a dollar.

Perhaps prime real estate is a hedge against inflation....if purchased well below market value, with low interest rate financing. However, a $750,000 monstrosity of a house in Palm City is not prime real estate. Even at $300,000, you have to find someone willing to shell out the maintenance and utility costs on a house that large.