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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (2026)	3/3/2002 5:42:25 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Snowshoe....I'm curious....why would anyone take a 33-percent loss of the magnitude that you describe by selling the house when prices are low? Why not keep the house longer and wait for prices to recover? And if one has no choice and is forced to move to another location, why not keep the house, rent it out, and let the tenant help pay the mortgage until prices recover? I know wealthy people who took those losses gladly during the downturn you describe, but they had made lots of profit on previous home sales, so didn't mind the one-time loss. Profits/losses are cumulative toward capital gains liability when the day comes that an owner finally decides to cash out of housing altogether--a loss actually helped them reduce future tax liability. Less wealthy people kept the houses and often had tenants help them make the monthly payment, while they moved on to new jobs or new circumstances elsewhere. Why take such a big loss? Better to live through it until the sun shines again.