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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Umm, maybe because you can get a mortgage at a rate well below the returns you can get elsewhere. Why by something with your own money when you can buy it with the banks, and invest your money at a higher rate?
Mr. Coffee's point is solid, you're making massive assumptions and generalizations, and also don't seem to have really thought about the actual economic consequences of certain choices.