Okay, so far we are one and one. While we are doing well on our savings/retirement plan, see Part II, our occupation based salary is flat/slightly down after five years, see Part I.
Real Estate
First the good news, we are making decent progress in paying down our primary mortgage. Last year we refinanced into a 15 year term with a 2.75% interest rate which will save us (between the reduced term and the reduced interest) $180,000 over the life of the mortgage.
The other good news we have is that all three of rental properties are rented and paying for themselves.
So, now the bad news. We live in South Florida and our rental properties are located in South Florida and if you know anything about the real estate bubble you know South Florida got hit hard.
In 2008 our primary home was valued at $465,000. At present I have the value at $399,000 which is based on the very thorough appraisal we had done last year as part of our refinance.
In 2008, our three rental properties and our vacant land were valued at a total of $823,920. At present, I have our investment properties valued at a total of $606,350.
So, in total, over five years we have lost, in equity, $283,550. Actual lost equity is likely even higher in that I have no idea if we could sell any of our properties for the current value.
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