Archive for June, 2008
What’s the True Value of your Home?
A few years back a lot of homeowners got obsessed with how much the value of their homes appreciated. The equity in their homes translates to “savings in paper” which they can use to finance another property, a holiday or their retirement. Even if some homeowners did nothing with that equity, it still gave them a feeling of financial security that they are actually richer than when they first bought their property.
However in recent times, that sinking good feeling had turned into financial insecurity and even bankruptcy to some. A lot of people are complaining how they lost a big chunk of the value of their home.
Thus, we sometimes wonder “What is really the true value of our home?” Is it the price we bought it for? Is it the valuation a few years back when prices were high or does today’s prices reflect the real value of our homes?
