The effective value of your house drops by 5% pretty much the instant you buy it - since Realtor commissions come out of the sale price, not out of the buyer. How much attention do you have to not be paying to miss something that basic?
The only people that's relevant to are condo-flippers, in which case I think we're all united in our lack of sympathy for them.
Most people don't expect a house (which they intend to live in) to go down in price over the time horizon in which they expect to keep it.
well, if they'd gambled on the stock market rising eternally too, would you bail out their 401K's?
Please explain how a mortgage instrument (typical holding time: 7 years) and an investment instrument (typical holding time: 35+ years) have anything to do with each other.
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momijizukamori
Re: middle ground
Date: 2008-09-22 15:07 (UTC)The only people that's relevant to are condo-flippers, in which case I think we're all united in our lack of sympathy for them.
Most people don't expect a house (which they intend to live in) to go down in price over the time horizon in which they expect to keep it.
well, if they'd gambled on the stock market rising eternally too, would you bail out their 401K's?
Please explain how a mortgage instrument (typical holding time: 7 years) and an investment instrument (typical holding time: 35+ years) have anything to do with each other.