ladelfina
Thinks s/he gets paid by the post
- Joined
- Oct 18, 2005
- Messages
- 2,713
Sure, you did. But because of the timing, not because of the borrowing per se.
That San Jose house might be headed back down to $239k for all we know.
If you look at financing a home from the investment perspective of allowing you to leverage and make a big gain, how is it different from buying stocks on margin? Is that a great idea that everyone should also implement?
I don't think I ever said no one should ever, ever have a mortgage. I don't consider a mortgage entirely "consumer" borrowing (but it is when you are borrowing 120% of the sales price). Even if you look at debt as a kind of medicine that sometimes you need to assume because of some specific ailment: that doesn't mean you should be gobbling down hundreds of aspirin a day. A $4k car loan is not likely to be toxic; a $40k car loan may well be.
That San Jose house might be headed back down to $239k for all we know.
If you look at financing a home from the investment perspective of allowing you to leverage and make a big gain, how is it different from buying stocks on margin? Is that a great idea that everyone should also implement?
I don't think I ever said no one should ever, ever have a mortgage. I don't consider a mortgage entirely "consumer" borrowing (but it is when you are borrowing 120% of the sales price). Even if you look at debt as a kind of medicine that sometimes you need to assume because of some specific ailment: that doesn't mean you should be gobbling down hundreds of aspirin a day. A $4k car loan is not likely to be toxic; a $40k car loan may well be.