Quote:
Originally Posted by twdm
It doesn't work like that. The better hypothetical situation is. You bought a $3mil house. It dropped 15% in one year. Do you sell? No. OK it drops another 10% next year. Do you sell? No. It drops another 10% in 3 months. Do you sell? How many people could stomach this situation where they lost a few hundred thousand and wiped out all of their down payment and equity.
In addition, no one wants to buy in a down market. Would you buy a house that has been losing 15% year on year? That's what usually happens just like in a stock market crash. The people who can handle the swings ride it out, the majority gets slaughtered.
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If you have a job and can pay your mortgage what would be the point of selling. If your from China what would you do with that money after selling the house?
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Until the lions have their own historians, the history of the hunt will always glorify the hunter.
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