Quote:
Originally Posted by Tribesman
By diminishing returns do you mean their houses are not worth what they expected them to be worth due to the decline in house prices?
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Exactly, Its kind of dissapointing, you go through your entire life learning that real estate is probably the most secure and almost assuredly a positive return on your investment.
So you take out a loan for 150,000.00 and make payments for many years. Halfway through the term the interest rate goes way up even though they property is now valued at 80,000.00 you still owe the full 150. Not to mention that even though your property apprasil is now less that what you payed for the property taxes continue to go upwards as does homeowners insurance.