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I don't understand how this comment could even be made in earnest. Normal people don't buy their house with cash, they get a mortgage with a reasonable down pay

I don't understand how this comment could even be made in earnest. Normal people don't buy their house with cash, they get a mortgage with a reasonable down payment and a monthly sum they can afford. Your claim here is that someone who is buying a house, likely early-mid in their career at 25-40 years old, needs to pay for a million dollar house in cash while also having $3-4 million dollars additional cash reserves? For retirement, which they won't be doing for 30 years? What?

dheera 3y ago
> Normal people don't buy their house with cash, they get a mortgage with a reasonable down payment and a monthly sum they can afford. And this is why "normal people" are broke. I don't buy stuff with money I don't have. It should never be "normal" to do so. > For retirement, which they won't be doing for 30 years? What? They job might be obsolete in 5 years with AI on the horizon. War may break out given the current incompetents for presidency. Climate change is happening. If I had $1 million I would be saving it up and investing it for potential hard times coming, not blow it on a $1 million house. If I had $5 million, sure, I might throw $1 million of it at a house. The only time I would take a loan is if I have the cash but I believe I could significantly beat the loan interest rate by investing the balance in something else, AND I have other stable assets in case my plan doesn't work.
- seattle_spring 3y ago
  Having a mortgage on a house doesn't make you "broke". Just because you are exceedingly conservative with money doesn't mean your standards preclude the average person from obtaining a home.
  - dheera 3y ago
    If your net worth is negative, you are literally, by definition, broke. If you took out more loans than you have assets, you are broke. Yeah, the US economy is f'ed up, roofs to live under should not be this expensive. If you think a huge fraction of the economy borrowing money at high interest rates to have basic life necessities, despite being employed, is normal, you have been brainwashed by the system.
    - seattle_spring 3y ago
      If you take out a million dollar loan for a million dollar house, then your net worth is 0. Which is actually a pretty stupid starting point, because most people wouldn't buy a house and get a mortgage without having savings. In other words, if you have $300k 401k, 300k liquid savings, and then buy a $1m house with an $800k mortgage then your net worth is $400k + $100k + $1m - $800k or, in other words, +$700k. Yes some people push it, no that's not what I'm talking about, as your argument was that you must have enough assets to purchase a house cash before you can "not be broke buying a house."

dheera 3y ago

> Normal people don't buy their house with cash, they get a mortgage with a reasonable down payment and a monthly sum they can afford. And this is why "normal people" are broke. I don't buy stuff with money I don't have. It should never be "normal" to do so. > For retirement, which they won't be doing for 30 years? What? They job might be obsolete in 5 years with AI on the horizon. War may break out given the current incompetents for presidency. Climate change is happening. If I had $1 million I would be saving it up and investing it for potential hard times coming, not blow it on a $1 million house. If I had $5 million, sure, I might throw $1 million of it at a house. The only time I would take a loan is if I have the cash but I believe I could significantly beat the loan interest rate by investing the balance in something else, AND I have other stable assets in case my plan doesn't work.

seattle_spring 3y ago
Having a mortgage on a house doesn't make you "broke". Just because you are exceedingly conservative with money doesn't mean your standards preclude the average person from obtaining a home.
- dheera 3y ago
  If your net worth is negative, you are literally, by definition, broke. If you took out more loans than you have assets, you are broke. Yeah, the US economy is f'ed up, roofs to live under should not be this expensive. If you think a huge fraction of the economy borrowing money at high interest rates to have basic life necessities, despite being employed, is normal, you have been brainwashed by the system.
  - seattle_spring 3y ago
    If you take out a million dollar loan for a million dollar house, then your net worth is 0. Which is actually a pretty stupid starting point, because most people wouldn't buy a house and get a mortgage without having savings. In other words, if you have $300k 401k, 300k liquid savings, and then buy a $1m house with an $800k mortgage then your net worth is $400k + $100k + $1m - $800k or, in other words, +$700k. Yes some people push it, no that's not what I'm talking about, as your argument was that you must have enough assets to purchase a house cash before you can "not be broke buying a house."