Over-investing
'Over-investing in finance, particularly personal finance, refers to the practice of investing more into an asset than what that asset is worth on the open market. It is seen most frequently with houses, automobiles, and trailers.
If a homeowner makes additions or improvements to her house to the point that the owner has invested considerably more than the market value of other houses in that area, then she has likely over-invested in that house. The neigbourhood effect will serve to devalue the house so that is is worth less than what has been invested in it. Another example is a teenager that buys a used car for $2000, spends another $2000 on modifications, upgrades, and repairs, even though the 10 year old car will never be worth more than $3000 on the open market. He has over-invested in the car by $1000.
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