Quote:
Originally Posted by HockeyIlliterate
Well, your house isn't an investment, and so it shouldn't be treated as one. Furthermore, if you pay cash for your house (as I believe that one should), any loss in property value should have no effect on your income-producing assets nor on your need to draw from them.
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Well I'm glad I was never given that advice earlier... Had I done that I would have had to save at least an extra $200 000 before buying(as that is what the value has gone up by) and my rent would have doubled. I'd probably never have enough savings to buy a house, and if I did, that'd be 20 years worth of money all put into a house. If you are going to be somewhere long term and have a reasonable down payment and make responsible purchase decisions, saving to pay cash for a house is really bad advice.