Good point. If you rent you can put your stuff in storage and take a sabbatical. If you buy it may be a bad time in the market to sell just when you need to sell. Also I think you get taxed on your profit from selling a house, if you don't buy another one soon afterwards. There is a concept called 'negative equity' which is when you owe more money on your house than you could sell it for. This happened to a lot of people in Britain in the last recession after Thatcher encouraged people to buy their own homes rather than rent. When US house prices start dropping (soon?) a lot of people who got 100% and 125% mortgages are going to be very sorry.
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Re: Credit card GOOD, dependence on them BAD
Date: 2002-07-13 04:42 pm (UTC)There is a concept called 'negative equity' which is when you owe more money on your house than you could sell it for. This happened to a lot of people in Britain in the last recession after Thatcher encouraged people to buy their own homes rather than rent. When US house prices start dropping (soon?) a lot of people who got 100% and 125% mortgages are going to be very sorry.