| ▲ | al_borland a day ago | |
> No one can evict me into a hot rental market to suit their needs. The bank can, if you take out too many loans against your house that you can’t pay back. When you barrow against your house you’re increasing your risk. “Rational people don’t risk what they have and need for what they don’t have and don’t need.” - Warren Buffett My house is paid off now and I can’t think of anything that would make me barrow against it. Setting aside variable maintenance costs, with only having to worry about property taxes now, I could work at Costco and make ends meet now. That gives me some peace of mind against an uncertain job market. A loan against the house would change that equation wildly. | ||
| ▲ | 9x39 a day ago | parent | next [-] | |
It’s true over leveraging seems to be the American way, but GP was saying, I think, that homeownership does not have the risk of a landlord ending an otherwise mutually accepted relationship. If this is still accurate, a third of renters could theoretically be told the rent is doubling or learning the lease is ending. Depending on the health of the market, that can be a major risk, and not everyone can or wants the flexibility of a rental at all times. https://www.bls.gov/spotlight/2022/housing-leases-in-the-u-s... | ||
| ▲ | oblio a day ago | parent | prev [-] | |
Minor: borrow, not barrow. | ||