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Ten years ago a lot of people learned that housing is not as safe as they thought.
by Ididntdothis 7y ago
Ten years ago a lot of people learned that housing is not as safe as they thought.
- abstractbarista 7y agoIt actually is. You just can't be over-leveraged. The bank will give you waaayy more money than should ever responsibly be taken. Combined with emergency savings, you are quite safe as a homeowner.
- Ididntdothis 7y agoYes if you stay within your limits. But if you start loading up on debt because of low interest then things can go bad very quickly. So the advice go stop saving is bad.
- amiga_500 7y agoAnd how do you bid in a market where every house has >1 bidder and banks are lending waaayy more than is responsible?
- voisin 7y agoThis! The housing market seems to have punished anyone with a conservative financial mindset.
- amiga_500 7y agoIt forces you to fight with the least conservative, and the banks pour on more and more credit to appropriate ever greater swathes of national surplus. No doubt someone will say "you don't have to buy", but then you have to rent. Forever. Because they keep bailing out housing.
- tathougies 7y agoNo. They learned that buying a house with ridiculous terms and unlimited downside is not as safe as they were deluded to believe. Even in 2008, most people paid their mortgages, and were fine, housing wise.