I'm still convinced these people are crazy.
Years ago, pre-2008 in fact, I posted something that lighted a firestorm of indignation - I questioned the sanity of people who buy new RVs and amortize the purchase over 20-25 years. I had been to an...
Forum Discussion
qtla9111 wrote:
Oh, I agree with you 100%, but as I said, it is the exception. Think about the 4 million foreclosures that took place in the late 2000s. Who absorbed the cost.
No it is not the exception. Over the decades most home buyers would come out significantly ahead. Like any market there are ups and downs so if you bought in an up year and sold in a down year you lose.
We recently went through a huge market gain with over inflated home prices followed by a massive drop. Those that bought during the short peak period would be upside down although the market is making a come back. That would be the exception rather than the over all rule.
Furthermore, few people have $100-$200K or more to buy a house with cash. Their alternative is to rent which is 100% of their payments being lost forever. When buying you'll have a high chance of getting all of your payments back, usually more so than less.
