I have routinely heard people make the argument that when you own your home you shelter yourself from the lender because you don’t ahve a payment to worry about. I disagree with this because there is alwasy payments to be made on a reoccurring basis. This includes taxes, food, utilities etc which all require income.
When I have a couple of 100 thousand sitting in liquid accounts, irregardless of the payments, I can last a long time without any income at all.
Anyone who put 20% down on a home and is struggling to make payments right now would have been safer to avhe taken on the higher monthly payment but they would now have that 20% to make payment over the next couple of years.
Safety was having cash and control. When they put the 20% down they lowered their monthly payment, but they gave up control of their cash and in my opinion took on more risk.
So in the end it is all about trying to find ways of getting overcompensated for risk. These opportunities do not wave to you, you have to find them. For some it is worth their time. For others not so much.
For you you find that you can buy homes and your sweat equity reduces your risk. Nothing wrong with that. Seems to hold true to my formula.
