5 ms·
>Imagine that you've just taken out a 40 year $500,000 mortgage. How happy are you going to be if next year your house is now worth $250,000 but you still owe $
by hudibras 10y ago
>Imagine that you've just taken out a 40 year $500,000 mortgage. How happy are you going to be if next year your house is now worth $250,000 but you still owe $490,000 on it?
The thing is, this is exactly what happens with everything else that an American consumer purchases with a loan: cars, boats, RVs, everything that is purchased with a credit card.
As has been said before, a house is just a wooden box that you leave out in the rain for 30 years. But yet we expect that this box will become more valuable over time...
- zero_intp 10y agoI think a reasonable assumption should be made regarding home ownership, "Assume to pay (yearly) 3% of the current purchase price in maintenance or deferred work."
- PretzelFisch 10y agoI think your confusing house cost and property cost. There are not a lot of 500k homes around.
- accountface 10y agoi always assumed house prices went up because the population center expands and the price balloons out from the center, I guess i'm kind of dumb though