How I Think About Debt

Re:How I Think About Debt by slyall on Monday May 06, 2024 @08:23PM (#40281001)

A house is not a zero-risk investment. Any number of reasons from Natural disaster on down could cause it to lose much of it's value or even become uninhabitable. Possibly in a way that insurance wouldn't cover.

Think of people who owned houses in declining industrial cities. The local economy went bad, their house value went down and they faced a barrier to moving since they couldn't sell, move, and get a comparable house in a city with better prospects.

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Re:How I Think About Debt by dusted on Tuesday May 07, 2024 @04:30AM (#40283489)

it's still not a high risk, owning a house (that is, having paid for it, not owing any money to the bank) still leaves you in a better position than a renter, as you can basically let it burn and will still be in an easier position to get a loan for a new house in another place if you really need to

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Re:How I Think About Debt by slyall on Tuesday May 07, 2024 @06:31PM (#40292299)

So you are saying somebody with $500k of investments is worse off than somebody whose house just went from $500k to to $200k ?

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