Quote:
Originally Posted by GirlySports
income is not guaranteed forever, it's just too risky to over-leverage oneself. We all know the stories of engineers with big houses and cars in 2008 who lost their jobs.
Even if I was under 30 and made over $100K with a husband that also made over $100K, I would still buy a house that's under 500K, put a big downpayment on it or pay it off entirely.. why pay interest at all?
Then I have a nice, affordable 300-400K house (it's just the two of us, or maybe have one kid at that time) then my NEXT house when I'm over 30 will be closer to a million because I have this 400K house plus the money I've saved as a downpayment.
But 20somethings having a mortgage of over 500K? just seem dangerous and unecessary.
I'm a very safe and boring person that hoards money. I don't think I took a single vacation off the continent from the age of 22-28.
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But again those decisions you made are aligned with your risk tolerance and your earning potential. What if a guy under 30 makes more than 100k / year? What if they had a ridiculous inheritance? What if they were an entrepreneur and their business took off and they're a millionaire? Still under 30, but wealthier than others much older.
There's just no hard and fast rule, absolutes, black and white scenarios for any generation.
You made decisions on your risk tolerance and your earnings, what if other people are different? It doesn't make it the wrong decision necessarily.