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 peopl

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."