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> Hint: house prices don’t really go down much, because everyone is leveraged and literally can’t afford to sell below a certain point. Until something like a
by CydeWeys 6y ago
> Hint: house prices don’t really go down much, because everyone is leveraged and literally can’t afford to sell below a certain point.
Until something like a 2008 happens, and it doesn't matter how much people can afford to sell a house for, they're gonna lose it regardless if they can't make those ballooning payments.
- fastball 6y agoI think the idea of a house + mortgage being not-too-risky is obviously predicated on having a fixed-rate mortgage.
- albertgoeswoof 6y agoRight but that won’t affect a sensible buyer who has one property, accessible savings covering a year of repayments, a stable job, a fixed rate etc. You can just wait for the market to rebound. Or even better, provided you’re not in negative equity and have some cash in the bank, move up to a bigger house when the market crashes.
- vonmoltke 6y ago> they're gonna lose it regardless if they can't make those ballooning payments That's a reason to never touch an ARM, not to avoid buying a house.