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An excellent point. People who treat their homes as investments should remember that, should the investment completely lose value, it's reasonable to cut their
by angelbob 17y ago
An excellent point.
People who treat their homes as investments should remember that, should the investment completely lose value, it's reasonable to cut their ties and take the loss, not continue to take losses on it indefinitely.
That is to say, it is an investment, and should be treated appropriately as one.
If your house is a home rather than an investment, you can ignore this suggestion ;-)
Disclosure: I have a mortgage, but it's not underwater and is doing just fine.
- cschneid 17y agoRight, there are non-investment related values to a house for most people. Kids friends in the area, nice neighbors, the landscaping you did last year, etc. So even if you couldn't sell and recoup your mortgage, doesn't mean the value of your house is worth walking away from. On the other hand, investment properties are almost entirely dollar based. Which is why (in theory), banks require a higher down payment on them - to get you invested.
- wisty 17y agoThis might not apply for new homes, and those are the ones that are underwater.