alex [they, il]

  • 259 Posts
  • 686 Comments
Joined 1 year ago
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Cake day: July 26th, 2023

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  • It means that you can’t move. There are many cases where people sell their houses, either out of want (they’re moving somewhere else), or necessity (they can’t afford the upkeep or really need the money right now, etc.)

    If you take out a mortgage, you should be able to afford it with your income,

    True. But income changes with time and it doesn’t always go up.

    Negative equity means someone who lost their job can’t sell their house and get enough money to support them and get a smaller house. It’s bad because real estate is supposed to be the most reliable investment: it’s a plan B (and usually more of a plan C) and if that fails, people may have nothing left at all.