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In a rising market, both renters and owners can move. In a falling market, only renters can move.
by wtvanhest 8y ago
In a rising market, both renters and owners can move. In a falling market, only renters can move.
- darawk 8y agoWhy?
- danans 8y agoI think they're saying renters can move without taking a large loss, but owners generally can't, since they have to either sell at a loss, or rent out their property at a loss.
- oldcynic 8y agoNegative equity. £200k mortgage on a house now worth £150k. To move, first find £50k.
- scotty79 8y agoYou can just leave the house empty without selling it. You just need to pay taxes and mortgage but not utilities for your empty house.
- oldcynic 8y agoThat can work for some. Paying a mortgage and rent on the new location, along with 2 sets of taxes gets expensive real quick. Some utilities have standing charges/line rental too.
- jbarham 8y agoI've witnessed this myself. In 2009 the company I was working for in Calabasas, California, laid off a lot of people. Since I rented, I was able to end my lease and move to a new job in Orange County. Colleagues who had bought and were underwater were forced to search for new jobs within commuting distance of their house.
- refurb 8y agoSame here! Was living in NE during the 2007 crisis. Found a new job, gave my landlord 30 days and done. I had coworkers who wanted to find a new but were now $200K under on their house. The mobility renting offers can't be understated.