Sometimes we wonder whether our leaders are like the rest of us. In the case of Treasury Secretary Timothy Geithner‘s attempts to sell his home, however, we can see evidence that there are some who are affected by the current housing market troubles — even in their lofty positions. After spending $1.601 million to buy a home in New York in 2004, the Geithners have been trying to sell. Originally put on the market for $1.635 million, the price has come down. CNN Money reports on Geithner’s real estate troubles:
It’s a familiar story as the housing crisis continues to unfold across the country. Indeed, after Geithner’s house sat unsold for nearly 3 months, the price dropped to $1.575 million. Still there were no takers, so Geithner listed it as a rental for $7,500 a month, and has since found a tenant.
But it’s unlikely that even such a steep rent will be enough to cover the mortgage, in addition to the $27,000 in annual property taxes.
Of course, many people facing a similar situation aren’t trying to sell million-dollar homes. And many of them lack a job that pays more than $190,000 a year. At any rate, it is somewhat comforting to know that some of our leaders really are running into some problems.
Going forward, it is important to recognize that a primary residence is rarely what one would call an investment, and that it is indeed possible for real estate to lose value.
image source: Wikimedia Commons