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A 30% hit in value only matters if you need to sell it. If it's an investment property, you could probably just hold onto it until the market recovers. As long
by ForHackernews 9y ago
A 30% hit in value only matters if you need to sell it. If it's an investment property, you could probably just hold onto it until the market recovers. As long as the value of rent payments > mortgage payment + maintenance costs, it's no skin off your back if the value drops on paper.
- analyst74 9y agoIn most cases, rent and the cost of owning is related, meaning that if you're 30% under water, the rent will likely only cover 60~80% of your monthly expenses. On top of that, if you had to move away for another job, there are additional expenses around managing rental property remotely.