I’m in the same boat as you are if you own something that’s declined in value. Two months ago, I closed on a home that I’m fairly certain is worth less today than what I paid for it.

Fortunately, I’m experienced with buying real estate that drops in value. I say ‘fortunately’ because I’ve learned time and again that home prices always ultimately go up.

The first property I bought that tanked in value was a set of flats in NOPA I bought them when the market was peaking in December of 1988. They cost $375,000. I sold the units off piecemeal over the next ten years and more than doubled my money.

The second one was a little South Beach condo. I paid $462,000 for it in 2000, right before the Dot-Bomb Bust. I sold it five years later for $640,000.

I paid $817,000 for my current home It’s probably worth under $800,00 now, but I don’t care. Until the market goes up again, I get to live in a place that’s a gazillion times better than my old one. So I’m glad I beat out the other four offers and bought it when I did.

This entry was posted on Saturday, September 29th, 2007 at 12:00 pm and is filed under Market Conditions. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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