We have lost so much money on homes in the past that I was surprised when our current home finally began to increase in value. So, here's my little house story. When I was dating Mr. Sohy, he made the mistake of buying a cute little house out in the boonies, about 20 miles from Greenville, SC, for about 45K. I knew it was a very bad idea because I'm pretty good when it comes to choosing real estate, but I didn't feel since like it was my place to tell him that, so. he bought the house. WE moved in together and I got my favorite job, just a ten minute drive away. He got pissed off a this boss one day and got fired. I didn't want to move but I felt sorry for him, so when he found a job in Raleigh, I agree to move. The house sat on the market for almost 2 years and finally sold for 39K.
Next....we decided to buy a condo in Raleigh because interest rates were in the teens and that's all we could afford. We found a nice condo for 65K and lived there with the son for about 5 or 6 years. Then, Mr. Sohy begged me to move again. Since I always wanted to live near the water, I agreed. It took several years to sell the condo and we rented it out while waiting for it to sell. I don't remember what we got for it, but it was less than 65K. It might have been around 50K, but at least we had never put much money into fixing it up.
Next....We lived in Destin for about 2 and half years in a very cute little house about half a mile from the Gulf of Mexico. I loved living there, but I hated working with a bunch of total bitches, when I was the QA supervisor and later the nursing supervisor in a home health agency. I hated being supervisor, but was forced to take the position. I've worked with nurses where we all got along well, but it's very common for the opposite to be the case. But, I digress. Mr. Sohy had a great job with a long commute, but he didn't like his boss, so once again he convinced me to move. That was a huge mistake. But, we actually made about 20K on the house that I picked out.
Next....another mistake. He went to work for a total asshole, who he had known for a long time, but this time the guy owned the company and he was horrible to work for. Sprawl was crazy in the Atlanta metro area during the early 90s, and I wanted to back out of buying a new house, but I couldn't convince Mr. Sohy. I knew there were areas closer to the city that would be better buys. Mr. Sohy immediately started looking for a new job within weeks or months after starting the new one, and it took two years to find one. That time, I couldn't wait to move, but the house was on the market for a long time and he had a horrific 75 mile commute. We finally found an honest investor, after being ripped off by one who was arrested for creating a Ponzi scheme, who agreed to rent out our house in exchange for selling it to him for what we owed on it. It took about two more years to sell the house, but at least the rent we got, more than covered the mortgage. Meanwhile, we bought our current house and I fell in love with my small city, as I hated living North of Atlanta in a congested, transient mess. Plus, after working with another set of religious nuts in North Atlanta, who gave me a hard time, I asked for a transfer. I liked the new office but the commute was hell. I worked part time for the rest of my working life, partly in home health and partly as the only nurse in a small long term care community.
For years, our current home didn't increase in value, but we only paid 125K for it. It's a brick ranch built in the 60s with almost an acre and a large swimming pool and drive under basement garage. We've been here for about 25 years and about a year ago, the house was finally worth about 300K or so. But, we've spent over 50K having the primary bathroom and kitchen remodeled among other things. The house is about 2000 sq. ft, more than we need. Inspire of that, I love this house and it will be hard to leave it behind. It's a beautiful design, imo, with a circular drive out front, great landscaping and another drive that leads to the basement. It's just getting to be more than I care to manage.
We also had a small vacation condo across the street from the Gulf, which sold in two days for twice what we paid for it. We had lots of fun there for about 18 years, but due to the beach becoming filled with high rise condos and big box stores, we decided it was time to move on. To be honest, although I certainly don't want to live in Florida any longer, I'd be happy to have a tiny home with no clutter that is easy to clean.
Eventually, if we live long enough, we will move to Indy to be near the son. I look at condos online all the time. They are very affordable but at least twice the price they were a few years ago. I blame myself for not buying one about 5 years ago, after we sold the beach condo. If I wasn't so afraid to collect real estate, I could have made a small fortune by buying up condos in Atlanta during the Great Recession, when prices were insanely low, but I missed the chance, mostly because while I've always been a real estate nut, I hated the idea of having to deal with more than two pieces of real estate. I've been tempted to buy a nice condo near my son for about 110 that I saw online, but I'm not quite ready to do it. I think it got sold or was rented out recently. We have enough money to live comfortably, assuming neither of us ever need long term care, the greatest fear of most older adults.
I forgot to add that my ex and I had bought two small homes that we ended up selling for what we paid for them, but we only had each one for a year or two.
So, the moral of my story is that you can lose or gain money on real estate depending on where it is and the economy at the time you try and sell it.
My parents made their wealth from real estate. But, they lived in NJ, very close to New York City, where prices and taxes have always been insane.