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But renting also guarantees you will never have negative equity.
by notch656a 4y ago
But renting also guarantees you will never have negative equity.
- quantified 4y agoNegative equity with a roof over your head is better than on the street. Your equity going to zero is still cheaper than raising a family to adulthood in a rented place.
- notch656a 4y agoI agree there are lots of upsides to having a house. I definitely get some used car salesman vibes whenever someone tries to sell up the upsides of negative equity, though. Having no chance to have negative equity is pretty much unequivocally one of the few absolute advantages of renting. The other being (typically) lower transactional costs for short term occupancy.
- quantified 4y agoNegative equity means little. So what if it's worth less when you sell than when you buy? Compare the net on that with the loss you take from renting. Only a fool treats their dwelling as an appreciating asset anyway. It's subject to market forces.