4 ms·

What I really want as a renter is not to buy a house but to protect myself from rises in the residential housing market in whatever area I'm living. I want to i

What I really want as a renter is not to buy a house but to protect myself from rises in the residential housing market in whatever area I'm living. I want to invest a portion of my income that will grow when the housing market grows. That way I can continue renting but hedge against big swings should I want to buy in the future.

loxs 9y ago
How do you protect yourself from drops in the local housing market? Especially if you have a mortgage?
- BoorishBears 9y ago
  Isn’t the idea that you don’t worry about it? You’ll still have your home. On the other hand, if the market explodes and renters who are paying prices below market start getting forced to pay more or move out, you’re left with no options
  - loxs 9y ago
    Yeah but if the market collapses and you lose your job, you'll be forced to sell at a huge loss
    - BoorishBears 9y ago
      How does a drop in the local housing market lead to you losing your job? A general market crash causes many people to lose their jobs, it doesn’t discriminate against homeowners. The renters are probably in a worse position in that case too, stop paying rent for a month and you’ll be evicted the next month. Stop paying your mortgage and the bank will at least work with you for a little longer.
      - loxs 9y ago
        Yeah, like the landlord won't work with you for a little longer in a global crash? They will be very eager to start looking for new tenants? Of course, if your job is remote, a local crash won't make you lose your job, but if it's local... prices just don't drop locally without reasons.
        BoorishBears 9y ago
        Around here most management companies probably wouldn’t care. These aren’t small mom and pop operations but companies with straightforward rules. You’d probably get an eviction notice before a human was in the loop.
      - gshubert17 9y ago
        Sometimes the cause is a loss of employment at a large local employer, and the effect is a drop in the local housing market as former employees try to sell and move to places with a better job outlook.

loxs 9y ago

How do you protect yourself from drops in the local housing market? Especially if you have a mortgage?

BoorishBears 9y ago
Isn’t the idea that you don’t worry about it? You’ll still have your home. On the other hand, if the market explodes and renters who are paying prices below market start getting forced to pay more or move out, you’re left with no options
- loxs 9y ago
  Yeah but if the market collapses and you lose your job, you'll be forced to sell at a huge loss
  - BoorishBears 9y ago
    How does a drop in the local housing market lead to you losing your job? A general market crash causes many people to lose their jobs, it doesn’t discriminate against homeowners. The renters are probably in a worse position in that case too, stop paying rent for a month and you’ll be evicted the next month. Stop paying your mortgage and the bank will at least work with you for a little longer.
    - loxs 9y ago
      Yeah, like the landlord won't work with you for a little longer in a global crash? They will be very eager to start looking for new tenants? Of course, if your job is remote, a local crash won't make you lose your job, but if it's local... prices just don't drop locally without reasons.
      - BoorishBears 9y ago
        Around here most management companies probably wouldn’t care. These aren’t small mom and pop operations but companies with straightforward rules. You’d probably get an eviction notice before a human was in the loop.
    - gshubert17 9y ago
      Sometimes the cause is a loss of employment at a large local employer, and the effect is a drop in the local housing market as former employees try to sell and move to places with a better job outlook.