A lot of those people who are losing their houses are losing them because they treated money they had not yet earned as an asset. Unless your employment contract says you have tenure, you should act as if it does.
Then nobody would ever be able to buy a house with anything less than cash.
Nobody has a guaranteed job for the next 30 years
"Then nobody would ever be able to buy a house with anything less than cash."
I've heard worse advice. That would have avoided the mortgage crisis anyway. The fact that the default in so many markets is to 'buy' things with borrowed money is probably for the worse.
I'm not saying one should never go into debt, but, plan ahead. Your job is not a given so make sure you have a buffer.
Remember the mortgage is secured on the house, so in a non-recourse state, you can simply hand the house back to the lender and walk-away.
This is how commercial real estate works. Can't fill the building? Hand it back to the lender.
Re:Why I Quit A Six Figure Job
by yummyfajitas on Tuesday June 22, 2010 @05:09PM
(#1453191)
If you don't have a guaranteed job, don't take out a mortgage under the assumption you'll never lose your job.
The risk-reward incentives for being an employee vs. employer are not quite so simple as you make out.