Re:How to survive and thrive in a down market
by scarface74 on Friday July 27, 2018 @10:08AM
(#17626044)
As far as the house you live in, if you don’t plan on moving, why do you care about the value of your house? For me, getting a house with a fix rate loan was a no brainer. Rent where I was staying from 2012-2016 went up by $500 and it’s gone up another $300 since then - and I’m neither on the west coast or live in NYC.
Owning a house as a primary residence is a great inflation hedge. Besides, apartments can kick you out within a matter of weeks if you don’t pay. Banks really don’t want to foreclose on a house - especially during a downturn. You have a lot more leeway on not paying your mortgage than your rent.
Re:How to survive and thrive in a down market
by hourislate on Friday July 27, 2018 @10:23AM
(#17626164)
Be wary of Hussman. He has been on the wrong side for at least 20 years. Eventually he may be correct but you will have missed many opportunities to grow your wealth.
Re:How to survive and thrive in a down market
by nine_k on Friday July 27, 2018 @10:29AM
(#17626208)
As a side note, someone being consistently wrong for 20 years is a great predictor; we should just continue doing the opposite of the advice.
Re:How to survive and thrive in a down market
by syntaxing on Friday July 27, 2018 @09:40AM
(#17625856)
I'm on the same boat. I have debating for the longest time if I should buy a house and everyone keeps on telling me that interests rates are going up so now is the time. But buying a house will pretty much wipe out all my savings and if I ever lose my job during a downturn, foreclosure is almost imminent.
Re:How to survive and thrive in a down market
by jrs235 on Friday July 27, 2018 @11:14AM
(#17626548)
In many states foreclosure takes a "long" time. Making partial payments can prolong the process too. Research foreclosure laws in your state. After the housing burst there was a flood of delinquent mortgage payers. The banks didn't want to hold empty houses and were slow to go to foreclosure. Not to mention the courts were/would be swamped with them. Perhaps include these factors in your risk analysis too.
Re:How to survive and thrive in a down market
by frockington on Friday July 27, 2018 @10:19AM
(#17626134)
Q2 GDP growth was 4.1%, don't listen to heavily to the outlier nay-sayers. They've been predicting negative returns for the next ten years since the S&P was tracked
Re:How to survive and thrive in a down market
by Infinitesimus on Friday July 27, 2018 @10:25AM
(#17626177)
A broken clock is right twice a day...
Not saying you should assume the market is going to crash asap and panic, but long-term thinking requires you to prepare for the inevitable downturn the best you reasonably can.
Let's not forget how rosy things looked before 07/08
Specifically, I’m considering buying a house and renting out my current house right now...to buy or not to buy. Leveraging up is great until house prices drop by 30%. Then again, the previous recession was specifically a housing crunch, so perhaps the next recession won’t create the same housing drop.
No one on this thread knows the future, but it’s hard having lived through a very long bull market to anticipate the results of what looks to be a pretty severe bear market.
Hussman Funds is calling for negative total returns on the S&P500 for the next 10 years, which feels like a very long time.