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Story number 4
Just remembered this one, which I think I've shared.
This guy that I know through a friend way (IMO) overbought initially based on his life circumstances which was far from financially stable and purchased a $3M home (nowhere near water or anything to make it appealing) about 5 years ago. Anyways, he makes a lot per year so he could afford to make the mortgage payments reasonably easy, especially in the time of record low interest rates. Now this home had to have been 6000-7000 sqft at least I figure.
Well, in the time of the market craze, he and his wife apparently decided that wasn't big enough, so they sold their home for about $4M as I understand, so they cleared $1M so that was pretty good...BUT they wound up buying an $8M...maybe $8.5M property instead.
Property is on 10 acres, is 16,000 sq ft, just an insane house. I have not seen it aside from pictures, though I've spoken to the guy a few times since. Well, as life would have it, there were some struggles and to try to work through them, he had to move about 3 hours away and while he is still working full time, he's now doing a lot of commuting.
So now he's trying to offload this place because there is really no point to it, but interest rates have shot up so much that there is just no buyers. Its been on the market for at least 6-8 months now and still is because I just looked it up.
But he's listed it for $8M so that he tries not to lose much money on it - I can't understand it really because he's just not going to get anyone to pay that kind of money in today's market. And what's worse, I know that he is spending about $3-4K per month on landscaping costs alone, plus all the other ancillary things that come with trying to maintain a property like that so it is in A+ condition for any buyers...plus his property taxes on an annual basis which are no doubt significant. So all these monthly costs are just going to be eating him alive.
This is one guy though that I can't feel very sorry for though - I think he was too concerned with appearances and wanting everything now. Felt like he always thought he was a bigshot and a little arrogant. I believe he is being taught a valuable little lesson and he's eventually going to have to take a haircut on this place. A pretty significant one too I think. Have to say, I've been following this one with interest...will see how it plays out, though I think this is a story that is going to take a year or two.
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