Quote:
Originally Posted by yads
People who are saying mortgage is not debt in this thread is so mind boggling. If your liabilities exceed your assets it's time to declare bankruptcy. Just because you're solvent, does not mean you don't have debt. Valuations of any non cash asset can change from day to day.
I heard a great analogy of what someone is doing when they get a mortgage. You are simply renting money.
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Just out of curiosity then do you think that people should just save up until they can buy a home in cash? I get what you're saying about the solvency point, but at the same time borrowing is the one way that most people can afford to own a home. You can't usually borrow money for free (especially hundreds of thousands of dollars), so your options are limited.