Quote:
Originally Posted by The Hype
I dated the girl Austyn for a while last year, kinda did a double take when I read that article, then saw her facebook post and how literally everyone was giving her props... Not one person out of 50 was questioning the logic. I hope it turns out OK for them but geez... %5 down on an 800k house?! I just don't understand how this makes any sense!
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wait, what, you dated one of them... so she's only in a relationship with this dude for a year or less, and is buying a house with him, and two other friends...
i just don't understand the thinking.
and to godwin, i'm not quite sure if i'm reading what you wrote correctly, but the risk here is that one of them falls our, has kids, wants/needs to move away, turns into a drug user/dealer, defaults (they're all liable for the whole mortgage, by the way), and then decides to move, sell, or whatever... as for there being a line of ppl to take over, for the whole house perhaps (though it will be now two separate homes in one, but that seems to appeal to some), but for half a house, i'm not so sure, it's not a true duplex... also, this could happen with RE prices 10% lower, so they've now lost, after realtor fees/mortgage release fees, and others, about $25K each.
now, if these people put 20%+ down, i'd get it, they've made a bit more of a sane decision based on wanting more land, a bigger place, etc. but the fact that they only put 5% down is just mind blowing. 4 ppl, $40K total... if 1 person doesn't have $100K as a downpayment in vancouver, i just don't think it's a wise choice to buy (partially bc of diversification, though).
i don't mind admitting that i will feel little empathy for those with negative equity if and when things turn sour. home ownership is a privilege, not a right. leverage is a double edge sword, but most people see leverage as a financially smart thing to use.