[twblalock]

> I don't see how it's any different to me withdrawing my entire bank account, walking down to the casino and putting it all on black?

The difference is that you still own a home, even if it is worth less than what you paid for it. If you bet all your money on roulette and lose it, you have nothing left.

30 years from now, when you pay off your mortgage, your cost of living will be very low -- this is very good for retirement. People who are still renting 30 years from now will probably be paying monthly rental bills higher than your mortgage payments, due to inflation if nothing else. The difference over that time might exceed your hypothetical $100k.

[dominotw]

> this is very good for retirement.

i can buy a house in detroit for $400 and pay no rent . is it a good retirement?

[imtringued]

It's a house and you can live in it. You're isolated from the job market because you receive a pension. It's definitively a good investment assuming you bought it in a good condition back when its price was $200000.

[bluGill]

Depends, do you like the neighborhood in Detroit? This is a personal question, don't let anyone else's hate of Detroit tell you different.

[dominotw]

exactly. It depends on whether you like it or not. having a house is not a good investment by default.

[BigJono]

I still don't get it. If your house is worth less than your mortgage, then you're gambling on an increase in it's value. It's like taking out a loan and gambling with it to try and pay off a debt.

[twblalock]

You aren't gambling on anything. You continue to pay the price you agreed to when you bought the house. It's unfortunate if it ends up being worth less than you agreed to pay for it, but it's not gambling -- that's what happens when you buy a car, and buying a car is not gambling either.

[BigJono]

Yes you're paying the same amount, for an asset that's worth a variable amount. The only time the amount that asset doesn't matter is if you plan to never ever sell it, which isn't realistic for most people (see elsewhere in the thread where someone pointed out that the median ownership time was 15 years or so).

[imtringued]

What if you simply can afford to pay off the mortgage? If you can't, then buying the house was a bad idea no matter how the market moves.