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So basically if you make an investment, you'll be better off than not making one if everything goes well. I can agree with that. But why a house? I could just
by bemmu 11y ago
So basically if you make an investment, you'll be better off than not making one if everything goes well. I can agree with that.
But why a house? I could just as easily say that if you take a loan to get a McDonald's franchise, then once that's paid off you'll at least have that store. Or the same logic for any other investment.
And the counterargument would be that you don't want to be fully leveraged because there's some risk involved in that. In the case of a loan maybe something will go wrong and you won't be able to afford the payments. Or maybe a new opportunity arises and you don't want to live in that town anymore and need to sell, possibly at a loss.
Maybe I actually should go out and buy a house. I just get this feeling that I don't really fully understand all the risks involved in this decision.
- OneOneOneOne 11y agoAdvice I give is to buy a house once the cost of owning the house is lower than rent. What I learned the hard way is to not buy more than you need.
- bshimmin 11y agoYou can't live in a McDonald's franchise. You can obviously sell it and buy, er, a house though!