News for hackers. Stuff that matters.

A comment on The U.S. Housing Boom Is Coming to an End, Starting in Dallas. Parent comment

Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by gowld on Tuesday November 27, 2018 @12:39AM (#18539732)
You can rent out that investment if you move. Paying rent is also expensive where home prices are expensive.
[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by nostrademons on Tuesday November 27, 2018 @01:51AM (#18540096)
A lot of working professionals don't want the hassle of also being landlords, particularly remote landlords. If your tenant has a habitability issue, it's your problem. If they don't pay rent and you have to evict them, it's your problem. If they trash the place, it's your problem.

If you pay a property manager 10% to make it their problem, the economics of paying a mortgage on a home you're no longer living in and renting it out become significantly more questionable - particularly in some place like the Bay Area, where mortgage payments are already often more than you would pay to rent the equivalent dwelling.

[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by Latteland on Tuesday November 27, 2018 @01:03AM (#18539849)
If you are lucky you can get money from renting. If you were unlucky and had a house in the rust belt and jobs disappeared then few people could buy or rent your house. So people can get trapped. At least you can expunge your mortgage debt with bankruptcy. Not being able to expunge education debt is what's holding our economy down.
[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by sokoloff on Tuesday November 27, 2018 @01:47AM (#18540066)
Not being able to expunge education debt is what makes education lending possible.

Otherwise, there’d be a line to file strategic bankruptcy after the last tuition payment was due...

[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by aedron on Tuesday November 27, 2018 @05:37AM (#18541182)
Cheap borrowing drives up prices of goods. This is true in housing and it is true in education.
[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by EADGBE on Tuesday November 27, 2018 @09:56AM (#18542711)
Revocation of a degree with the dissolving of student loan debt in bankruptcy certainly could work for some.
[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by sokoloff on Tuesday November 27, 2018 @01:11PM (#18544899)
That doesn't make the lender whole, though; there's nothing they can repossess or foreclose on.

It's a mild deterrent for some cases, but for a lot of situations, having the degree isn't anywhere near as valuable as having the education.

[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by tcbawo on Tuesday November 27, 2018 @09:44PM (#18548858)
Other (less fair) ways of doing it include requiring a co-signer or allocating some assets as escrow. Although, like healthcare, the problem is probably the cost not the financing.
[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by thedailymail on Tuesday November 27, 2018 @02:33AM (#18540279)
Why would anyone file for bankruptcy right before paying their last tuition payment?
[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by lowpro on Tuesday November 27, 2018 @09:28AM (#18542500)
I think the OP meant “make their last tuition payment to the university”, in other words, they’ve fully taken on the debt of education and are about to graduate.
[ Parent | on HN ]
Re:The U.S. Housing Boom Is Coming to an End, Starting in Da... by sokoloff on Tuesday November 27, 2018 @12:25PM (#18544359)
Indeed. I'm not quite sure how that was misread.
[ Parent | on HN ]