I think alot of this comes down to the dangers investing on margin.. People are buying houses investing on margin with the idea that it’s a no risk investment..
Most people understand that they should usually only invest with money they can afford to lose.. but when it comes to housing it seems like people think there are zero risks and that there’s no way they could lose in this investment… then it gets even worse since they’re investing on margin(borrowing money to invest with).. and I don’t think that’s money they can afford to lose.. since you know, they are borrowing it 🙂 and will have to pay it back no matter what.
I invest with money that I’ve earned through salary.. I feel it makes me more careful.. Most of the people that I know(people I know at work) that have taken home equity(funny money) and put it into the stock market lose that money.. because they aren’t careful with it and are under the illusion that since their home went up, they will win on any investment they make..
