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by this_user
4651 days ago
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Except you are not necessarily "building equity". House prices can decline and at the same time you do have to put money into the building in the form of renovations to maintain its current substance. What is even worse is that buying a house on a mortage with say a 10 or 20% down payment means three things: 1) The majority of your net worth is probably in that building so you're badly diversified across asset classes,
3) You are massively leveraged on that one position.
2) You are holding an extremely illiquid investment that could take months or even years to sell. This will probably be worst when when you want to sell the most. All three of those are marks of a questionable investment. |
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