There is a mindset with many people that they have to own a property - even it is not in their best interest. Some think housing would be a great investment. Others see it is part of the American Dream. But when tens of thousands are lost within one year it is both a bad investment and a nightmare. That is the case with today's example. Lets take a look -
Here is the property -
RELOCATED SELLER. UNIQUE OPEN MODERN DESIGN. GORGEOUS HARDWOOD FLOORS, TOTALLY UPGRADED CENTER ISLAND KITCHEN WITH GRANITE AND STAINLESS STEEL APPLIANCES. STUNNING DOUBLE-SIDED FIREPLACE. CUSTOM BLINDS AND WINDOW TREATMENTS. CENTRAL VACUUM, 9-FOOT CEILINGS. VOLUME CEILINGS IN MASTER BEDROOM AND BATHROOM. TWO LARGE DECKS OVERLOOKING LAKE. TENNIS COURTS, GYM, CLUBHOUSE, POOL. DEEDED DOCK.
Here are the financials -
- The property was purchased for $600,000 in August 2007.
- The first mortgage was for $480,000 with in ARM in August 2007 with JP Morgan Chase.
- A second mortgage was opened the same day in August for $50,000 with JP Morgan Chase. This loan was closed about a month after the purchase.
- The property is currently for sale through a realtor for $549,000.
The current selling price is just under 10 percent lower than the purchase price from a year ago. If they owner receives the full asking price (which is not likely if a relocation is involved and a quick sale is needed) with the realtor fees our featured seller will lose a minimum of $83,940 on a one-year investment.
Lately losses of this quantity are usually only seen on the lenders side. This is a huge loss for an individual to absorb. For most people in this area $84K is well over a years salary - gone, just gone. Some companies do pick up some of the losses on relocation. Hopefully this is one of those cases.