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Owning A Home, Owing Money

This article was written by in Real Estate and Home. 2 comments.

Rising interest rates make houses less affordable, and thus depress their prices. Homeowners who find themselves overextended may be heading for trouble.

There are some dangers that come into play when buying a house right now. Many people tell me that there is no housing bubble. They say that since housing values have always gone up, they will always go up. I just can’t buy into that theory. Also, it’s not correct to say that housing values have always gone up. On a national level they have, but when you own a house, you don’t own it on a national level. You own it in its immediate community. There are fewer chances of variables evening out.

Don’t forget what happened to tech stocks. No one thought they were going to go down; after all, they never really had before.

Published or updated July 16, 2003. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 1 comment }

avatar Darren R. Sussman

Well, of course. Buying a house is an investment, and a lot of people don’t look at it that way. But unless you plan on living in a house for the rest of your life, you have to consider your house the same way you’d consider any other investment. You have to think about whether or not the value of it will increase, and what you can do to help that value increase. And sometimes, like in any other investment, you lose.