Would you rather be renting with $250,000 in the Bank or Own a Home with $250,000 Equity?

[Stuntone]

Lets say you bought a house 3 years ago for 300k, now it's worth 550k. Do you sale and go rent or even buy another?

Or do you keep the house in this economic climate and hope the equity continues to increase?

And if the value was to drop to 500k, would you sell?

 

[NotAnFBIagent]

If your house went up that much all the other houses went up too. Unless you're moving away to a cheaper you're probably not making money

 

[Stuntone]

If your house went up that much all the other houses went up too. Unless you're moving away to a cheaper you're probably not making money

If you can sell and walk away with 250k liquid, that's not making money?

 

[Stuntone]

You invest that 250K correctly, you'll be able to buy a lot more than a house.

 

[NotAnFBIagent]

If you can sell and walk away with 250k liquid, that's not making money?

If you have to buy or rent another place in the same inflated housing market then you made a lateral move, no?

 

[OfTheCross]

Lets say you bought a house 3 years ago for 300k, now it's worth 550k. Do you sale and go rent or even buy another?

Or do you keep the house in this economic climate and hope the equity continues to increase?

And if the value was to drop to 500k, would you sell?

My first instinct was gimme the loot...

But upon further analysis, assuming my home is as nice as it is now or nicer, I'll take the roof over my head.

 

[MoveForward]

Give me the equity… I’m renting the house out and using some of the equity as a down payment on another property to rent out.

 

[UpAndComing]

Renting with 250k easily

Equity 90% of the time is imaginary. It is very hard to time the market. Unless you cash out at the right time, it is useless. You are at the mercy of what goes on in your neighborhood or surrounding area. A big Corporation or the Government can do so many things to raise or lower your house value. It's too volatile

The Rust Belt of the United States are filled with homes that had "amazing equity" during the manufacturing boom after WW2, and now alot of the homes are worthless because of the value of the surrounding area decreased

 

[OfTheCross]

Give me the equity… I’m renting the house out and using some of the equity as a down payment on another property to rent out.

Yup. Many more plays can be made with the asset + the cash is still available assuming you have a job to qualify for the payments

 

[Stuntone]

If you have to buy or rent another place in the same inflated housing market then you made a lateral move, no?

But you'll have 250k to start a business or invest?

And what if the market plummets? And that equity vanishes?

 

[Robbie3000]

Cash is king for a reason.

 

[MoveForward]

But you'll have 250k to start a business or invest?

And what if the market plummets? And that equity vanishes?

What if the business fails? Invest… What if the market plummets?