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Even if we have a downturn, rents tend to continue to rise and housing prices don’t tend to drop more than 8% avg. obviously local markets can vary. My point i
by newshorts 5y ago
Even if we have a downturn, rents tend to continue to rise and housing prices don’t tend to drop more than 8% avg. obviously local markets can vary.
My point is, these things can last 40 years. Human adulthood isn’t that long, you might not want to wait.
Having said that, we seem to be in a constant state of unpredictable events that may or may not have financial impact on our family. I’m continually feeling uneasy about paying for a house that was 3/4 less 6 months ago, but it’s been going that way for years.
We are renting, have been for a decade, but had we bought our net worth would probably be less. Housing in our area didn’t rise as much as stock did over the past few years.
If the house is important to you buy it, but financially there are other ways to become an owner of something valuable.
- sokoloff 5y agoLeverage in housing means price changes are magnified as a when compared to your downpayment size. If you put 20% down and the house goes up by 20%, your downpayment investment was doubled. Of course, if it went down by 20%, your downpayment was wiped out.
- refurb 5y agoConsidering we’ve had housing cycles since records have been kept and the last major price correction was 14 years ago I doubt “this will last 40 years”.
- Izkata 5y agoThose two statements don't conflict in any way. A more important question would be, when was the last major correction before the one 14 years ago? (Did some quick searches and all I'm finding is rates over the past 5-10 years, rates over the past century grouped by decade that don't even register 2008, and articles talking about 2008)
- refurb 5y ago2001, before that, 1990.