if you buy a house for more than it's worth it's your own fault. if you loose your job you HAVE to either sell it or refinance it, try to get a smaller monthly payment...
if you buy a house that looses 20% of it's value within 10 years you over paid for that house.
sorry to give you some bad news.
the only way you can loose money with a property is if you willfully pay too much for it and are then faced with a streak of bad luck. the price of a home isn't some baseline minimum. it's what you agree to pay for it.
negotiating skill are a MUST. the way home markets work is the closer your loan is to maturity the more likely it is that your house is worth more than what the mortage was worth when it originated.
even in this market that's the truth.
my father lost his job when i was young, he refinanced, used the money to cover the mortage the first month. we rented a small apartment. he rented the house and used the rent income to cover it's own mortage + landscaping and homeowners assoc costs...
the money he got from the refi he used for rent until he found another job. he did. then he used the money he still had from the refi to pay into that new loan, we spent HOURS at the bank negotiating a smaller and smaller payment. it takes patience and balls. the bank wants your business, they NEED your business. you have to go in there and take the gloves off. either they work with you or you go to their competitor. it's not hard, it's just a lot of work.
homes aren't an investment you just put money into and no work. HELL no. keeping a home that gains value is a WHOLE lot of work. you need to work with banks, work with neighbors, sometimes the government needs to get involved... all of it is work.... but it's worth it in my opinion.... a NICE place to live that you have worked for and earned is NEVER a liability....
it's pretty much the purpose of life.... right???
if you buy a house that looses 20% of it's value within 10 years you over paid for that house.
sorry to give you some bad news.
the only way you can loose money with a property is if you willfully pay too much for it and are then faced with a streak of bad luck. the price of a home isn't some baseline minimum. it's what you agree to pay for it.
negotiating skill are a MUST. the way home markets work is the closer your loan is to maturity the more likely it is that your house is worth more than what the mortage was worth when it originated.
even in this market that's the truth.
my father lost his job when i was young, he refinanced, used the money to cover the mortage the first month. we rented a small apartment. he rented the house and used the rent income to cover it's own mortage + landscaping and homeowners assoc costs...
the money he got from the refi he used for rent until he found another job. he did. then he used the money he still had from the refi to pay into that new loan, we spent HOURS at the bank negotiating a smaller and smaller payment. it takes patience and balls. the bank wants your business, they NEED your business. you have to go in there and take the gloves off. either they work with you or you go to their competitor. it's not hard, it's just a lot of work.
homes aren't an investment you just put money into and no work. HELL no. keeping a home that gains value is a WHOLE lot of work. you need to work with banks, work with neighbors, sometimes the government needs to get involved... all of it is work.... but it's worth it in my opinion.... a NICE place to live that you have worked for and earned is NEVER a liability....
it's pretty much the purpose of life.... right???
