Originally Posted by
redietz
Have a good day, folks. And yeah, buying a house while not paying cash is one of those idiot angles the culture has roped half its members into doing even though it's usually a bad idea for working stiffs. "Indentured servitude" and all that.
What do you recommend, renting?
At least when you buy a home you usually wind up getting some value other than simply maintaining a roof over your head.
But not always: case in point, a guy I know.
He closed on a house at the height of the market, just before interest rates went up.
His plan was to flip it, and sell it.
The house had been a rental for years and needed a lot of work; he did a lot of it but the work was extensive and expensive.
Then came the perfect storm to fuck him and his hope of making a profit go up in flames: interest rates went up and property values have started to go down.
He paid $550K to buy it, and must have over $150K in time and materials into it, and now he's fucked, at least until and unless interest rates come down and property values go up.
Timing is everything, so they say.