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by seanmcdirmid
3265 days ago
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This is completely unrelated to credit cards, but if you told me that 10 years ago, I would have agreed. Today is much different, I have plenty of friends who are $500k in debt on housing investments. Of course, China's rapid rise in personal as well as private and public sector debt is evidence of a changing society. |
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While that is a lot of debt, it is nowhere the same as saying you have $500k of debt on credit cards. Credit cards are unsecured debt; it's debt with little or nothing behind it.
Mortgage debt, though, is a secured debt. In theory, you could sell the houses, maybe for more than you paid for them, and possibly or likely more than you owe on them (that is, you gain the equity). Of course, you could also be upside down, but you still have the property, and you could just sit on it, rent it out, and continue to make payments on it from rent (or whatever) until the market comes back.