If I buy a 1997 DW today for 40K cash, and sell it in five years, how much would I expect to get back? I figure even if it goes down by half, and I get 20K out of it, I've still gotten a good deal. Why? Because the way I figure it, if I break it down into a monthly expense, then over five years, 20K equals 4K a year, or about $330 per month. My lot rental would $600 per month. So that comes to $930 a month. That's cheaper than rent. Owning a similar home would cost me at least 1500 per month including PITI, and I wouldn't have any money left to put in the bank. If my house didn't appreciate, I'd be hosed.
So, anyway, I'd be curious to hear others' thoughts or experience concerning how fast I would expect my home to depreciate.
Filed under Selling Your Home by on Jul 27th, 2009. 2 Comments. 