Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.
Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.
I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.
