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It's all relative. If home prices drop while you're renting that's a huge gain relative to owning property.
by thebean11 5y ago
It's all relative. If home prices drop while you're renting that's a huge gain relative to owning property.
- alphabettsy 5y agoYou’re right that it’s all relative, but that’s not necessarily true. Where I live buying is much cheaper than renting and even if my home is worth 25% less than I paid for it by the time it’s paid off I can come out ahead because I still have an asset worth let’s say $100k and I’ve spent less money than I would renting. That’s without factoring in the other reasons people buy homes.
- thebean11 5y agoIf your home is down 25% isn’t all or most of your equity “gone” anyway? Guess it depends how slowly, but if it happens immediately you basically lost your entire down payment