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Old 01-27-2012, 04:11 AM
Bob Shiftright's Avatar
Bob Shiftright Bob Shiftright is offline
Location: Behind Enemy Lines
Join Date: Feb 2006
Posts: 2,108
Mein Auto: E91 mobile beach locker
Originally Posted by 16n69 View Post

A home has traditionally been the biggest and in many cases, the only investment one can have, therefore acceptable debt...not the same as depreciating items.

Real estate has characteristics of both an asset and a liability. A house can provide shelter, but it also commits the owner to an infinite stream of maintenance costs and tax payments.

Once a speculative bubble bursts, it can take years if not decades for prices to recover.

Still, in 2010 about 30.3% of owner-occupied homes were owned free and clear, without a mortgage according to the Census Bureau. I think that number is probably fairly accurate. My neighborhood is more than 30 years old and about half are original owners so they shouldn't have mortgages. Not everyone went crazy borrowing during the credit bubble!

I'd prefer to pay cash and to drive a cheaper car and live in a smaller house than I can afford than to be a slave to debt. It would drive me crazy to wake up and need to go to a job I didn't love to make a car payment.
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E91 26K miles, 6-speed, RWD, Alpine, Terra, Xenons, ZSP, ZCW, ZPP, PDC, CA, alarm, M shifter and M brake handle, Euro rear fog light switch, Euro aspheric mirrors, rear power outlets, Euro split armrest, V-1 inside rear headrest, Cocomats (back to the 1970s!), $10 clutch stop mod. CYHY integrated dash cam (latest project).

Others include: Volvo V70 T5 5-speed 212K, original clutch. (Soon to depart. )

"I will give up my stick shift when they pry it from my cold dead hand!"