When you aspire to bigger and better things be careful what you wish for. Your state of wealth is subject to the phrase “this too shall pass” meaning I guess…an ability over time to make the happy man sad and the sad man happy.
Be too aspirational and buy what can only be described as a ridiculous house for $7.34 million in early 2007 – pay an estimated $400,000.00 in stamp duty and other costs to find yourself in a SEVEN AND THREE QUARTER MILLION DOLLAR HOLE.
Along comes the Grim Reaper of the late noughties, the GFC and it all goes pear-shaped. No-one wants your ridiculous house and even when it’s sold, the Contract falls over.
Once the receivers, agents and others involved in the eventual DISTRESSED SALE take their cut, you’re left with perhaps $2.8 million. I’m not privy to the size of the mortgage but I doubt from what I’ve heard that $2.8 million even comes close.
IN 5 YEARS THE SILLY HOUSE HAS LOST YOU SOME $75,000.00 A MONTH!
HOUSE PRICES DO NOT ALWAYS GO UP IN A STRAIGHT LINE…