Debtenfreude

Debtenfreud - "taking pleasure in another's real estate pain."

As the credit crunch continues to depress real estate prices across much of the world, even in some very high profile regions, a new term has been coined in Los Angeles – debtenfreude. Apparently this is the latest buzzword and is a sub category of the German word, “schadenfreude,” the “taking pleasure in the suffering of others.”

Meghan Daum of the LA Times writes,

As a homeowner, I know it’s counterproductive to take delight in the real estate misfortunes of my neighbors. But massive price reductions on a house down the street from me have left a lot of us in the neighborhood gloating. A hulking McMonstrosity that’s jaw-droppingly out of place among the modest bungalows that surround it, the house was clearly intended by its owner/builder to be a cash cow. But it’s been sitting empty for nearly two years since it was finished, and the price just continues to drop. LA Times

Similar situations are appearing all over the globe, and invariably it is the markets that saw the most benefit from the boom years that are feeling the pain most, and the current glut of empty McMansions is unlikely to go away any time soon. Even such previously untouchable areas such as The Hamptons is seeing it’s fair share of foreclosures and price cuts. So, the next time you walk your dog past a two-years-empty McMansion and start feeling a little smug abut your affordable mortgage, you know what to call it – debtenfreud.

Image courtesy – Curbed