Quote:
Originally Posted by ASAP
There is no similarity from a subprime loan perspective... but if we have a bubble burst and the business slows in other assets it will have an immediate impact on real estate... perhaps a lot of people are affording their homes due to "other investments". All of that security will fly out the window if we have an overall asset crash.
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Having gone through too many real-estate ups and downs in California I've learned to never leverage any property on, or for, another - and pay cash for all my purchases. Unless you're carrying debt, no ups and downs will affect you more than a mild inconvenience. In fact when there are upheavals in the real estate market I make more money on rentals than when things are smooth and stable. If you are "affording" your home due to "other investments" - you can't afford your home.