3 ms·
A house is not a zero-risk investment. Any number of reasons from Natural disaster on down could cause it to lose much of it's value or even become uninhabitabl
by slyall 2y ago
A house is not a zero-risk investment. Any number of reasons from Natural disaster on down could cause it to lose much of it's value or even become uninhabitable. Possibly in a way that insurance wouldn't cover.
Think of people who owned houses in declining industrial cities. The local economy went bad, their house value went down and they faced a barrier to moving since they couldn't sell, move, and get a comparable house in a city with better prospects.
- dusted 2y agoit's still not a high risk, owning a house (that is, having paid for it, not owing any money to the bank) still leaves you in a better position than a renter, as you can basically let it burn and will still be in an easier position to get a loan for a new house in another place if you really need to
- slyall 2y agoSo you are saying somebody with $500k of investments is worse off than somebody whose house just went from $500k to to $200k ?