Thursday, September 15, 2005

Panic

I had a moment of utter, blinding panic this morning. I woke up and thought, "Crap, I bought a 400k house!" Yikes!

The demand in downtown Seattle has far outpaced supply and the trend seems set to continue. Plus, I bought below current cost and I can always sell it and live in a smaller house if that's what I want. This was a strategic decision, not an emotional one. If I had gone on pure emotion I probably wouldn't have bought it because of the high sticker price (by my standards) but it wasn't an emotional decision and that gives me an edge. Scared as I am right this freaking second I just have to keep reminding myself that.

6 Comments:

At 9/15/2005 7:47 PM, Anonymous nyc money said...

I think it's a good decision. Don't panic.

 
At 9/15/2005 8:25 PM, Blogger Hazzard said...

I can remember back when I bought my first house. The payment seemed mind boggling and the responsibility of having a house just really stressed me out.

Well, it's over 7 years later (and one nicer house later) and I would never EVER rent again. Having my own place that I'm paying off as fast as I can, really gives me peace of mind now. Your decision was far more scientific and analytical. I think you made the right decision.

One other thing to consider. My net worth would be MUCH lower if not for all the home equity that I've been building.

Hazzard

 
At 9/16/2005 6:26 AM, Blogger Madame X said...

Everyone has their moment of panic, don't they? Don't worry, it sounds like you've really thought it through and made a good choice.

 
At 9/16/2005 1:47 PM, Anonymous henry said...

Just about everyone has buyers remorse. It'll pass. Your comment about selling and getting something smaller caught my eye. Can you get anything smaller than 950 sq. ft?

 
At 9/16/2005 2:40 PM, Blogger mmb said...

Good points everyone. I did put a lot of thought and research into this. Hazzard, that's a great history. It definitely helps me focus on the long term more. Thanks for sharing.

Henry, they do have some condos that are smaller for about 50-100k less. But they are a lot smaller (by 150-200 sq ft) and are studios so the resell potential wouldn't be as great. I was focusing on the long term risk-return when picking an unit and it seemed the 1 bedroom would be easy to sell. If prices keep rising I might even flip it and keep renting for a little longer or buy an older smaller condo in Capitol Hill instead of downtown. I am viewing this more as an investment than as a home and the smaller condo, although better in terms of my mortgage burden, seemed to be less of a bargain overall which is why I decided to go with the one I picked.

 
At 9/19/2005 6:09 PM, Anonymous Anonymous said...

Sounds like you really thought this through. Your reaction is normal but you're on the right track. Don't panic.

 

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