Quote:
Originally Posted by Claeren
Pretty funny, and i know what you are getting at, but in all seriousness there are a LOT of people who have purchased in the last year that will/could be severely upside down in their home mortgages within the next year and i am pretty sure they wish they had rented for just another 12 months.
And i am sure your comment would have seemed pretty funny when directed towards an American naysayer a few short months ago, and now there are hundreds of thousands who wish they had never purchased their homes.
Within a year, with many of my 'smart friends' having purchased homes in the last year at the height of the boom, virtually every severely (well any unsupported debt is severe IMO) indebted person i know will be a home owner, and be so indebted relative to assets due solely to that home.
It is pretty easy to overlook the bad situation the generation just behind you endured during this boom (screwed if you do buy, screwed if you don't - was still a kid pre-boom) when you were lucky enough to have been born a few years early and thus able to purchase a home just before the boom. Obviously you are better off no matter what the market does.
Claeren.
|
I am confused. Your "smart" friends bought homes they couldn't afford long term and now may be in "severe debt", which is a very menacing sounding term I hope I never face severe debt, and you are blaming this on the housing market? And saying they should have rented for another 12 months?
Maybe I have been given different financial advise than others but from the successful people that I know, owning is always preferable to renting in the long term and buying a house that you can't afford long term isn't a good idea anytime whether in a boom, bust or in between.