I thought that our current home would be a long-term purchase, but I’ve been having second thoughts. I never wanted a primary home to be a significant portion of our net worth, so I bought a cheap house ($175,000 in June of 2013). I spent a whole lot of time (4-year slog) and $100,000 fixing it up which increased its value. At the same time, Boulder County prices went bonkers. The home is now worth $550,000. I didn’t see this coming.
We have $450,000 in equity and I don’t like this one bit. The $450,000 isn’t working for us. It just sits there tied up in wood studs, tile, light bulbs and toilets. While those toilets serve a crucial purpose, they aren’t earning money. I can’t rent the toilets out. I can’t send them to work. They do make me smarter (reading time), but that’s a topic for another post. Or not. I digress.
Mrs. 1500 note: OMG, really? You can’t make it through one post without toilet comments???
I don’t believe our home will continue to appreciate like it has for the past 4+ years, so the money would be better off elsewhere.
I also don’t subscribe to the myth that homes are a wonderful investment. I bought it because I knew I could put some sweat equity into it and increase the value. Deep down, we’re really long-term, live-in flippers.
Garages, Yards and Crapcycles
I like our house and neighborhood, but I don’t love either of them:
I’d like a bigger garage: It would be fun to have a workshop to carry on my mad scientist experiments. You really can’t have too much garage in life.
A bigger yard would be nice too: I have a tiny yard. I’d love to have a bigger one.