Quote:
Originally Posted by Isaac Zachary
Also, in 2008, for an example, I knew people who had to move but owed more than their homes were then worth.
You also lose 100% of your mortgage payments if you die before you resell your home and never rent it out.
Not that buying isn't the right decision for most people. But it's not the be all end all path to financial security either and could be a wrong choice for some or not make much finacial difference for others.
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2008 was the only time in a century that home prices went backwards, entirely due to the incorrect perception people have that their residence is an investment, corrupt lending and insurance practices, and foolish government incentives. It was the exception, not the rule.
Your estate still retains the equity in the home when you die. Personally you'll lose it, but then in death you lose everything. Not following the point you intended here.
I'm not implying homeownership is always the best financial choice, only that it usually is for anyone staying in a particular area for say, 5 years or more. It's especially smart if one is single and rents the spare rooms.
Anecdotally, of the many people that have asked to borrow money, all have been renters; none owners.