Re:Silicon Valley's housing crisis, in one sentence
by Johnny555 on Tuesday June 07, 2016 @08:31PM
(#11859178)
I would expect it to be the other way around -- the more recently you bought (especially in the over-inflated Bay Area market), the more you need to worry about ending up underwater in your home value.
If you bought 20 years ago, even if a fire burnt down your house, it's likely that the land alone would give you a healthy profit. If you bought 2 years ago, a significant downturn in the market could leave you underwater.
Few people plan to sell their home shortly after buying it, but a market downturn could leave you without a job and you can't afford to move elsewhere for a job if you can't afford to take a loss by selling your house for less than your mortgage.
If you bought 20 years ago, even if a fire burnt down your house, it's likely that the land alone would give you a healthy profit. If you bought 2 years ago, a significant downturn in the market could leave you underwater.
Few people plan to sell their home shortly after buying it, but a market downturn could leave you without a job and you can't afford to move elsewhere for a job if you can't afford to take a loss by selling your house for less than your mortgage.