Quote:
Originally Posted by oil pan 4
Debt is bad, don't sugar coat it.
Unless your house is paid for (like mine) you miss several payments and that house you pumped untold thousands upon thousands of dollars is gone and you are left with a U-Haul full of stuff.
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If you miss several rent payments, you're out on the street. If your landlord decides to cash out or otherwise do something different, you're out on the street. If your landlord decides to not keep up on maintenance, you'd be better off heading out to the street.
Restructuring your payment to a mortgage and calling it "debt" doesn't make things worse for you- it's actually the opposite. Yes, you're paying the bank way more than the house's purchase price over 30 years, but what do you have to your name after 30 years of renting besides a shoe box full of receipts? You've paid way more than that box full of paper is worth, too, but no one seems to notice that. Why? Because having somewhere to live is an expense. If you have tons of capital you can sink it into a house to avoid the appearance of an expense, but you're missing out on what that same money would have made sitting in stocks. Paying your housing expenses with money you already have doesn't mean you're smarter than people with mortgages, it just means you started out with more money than them and can afford to hide your housing expenses with money you already have.