International Investing

To people buy homes just to avoid the stigma of renting? Homeguide123 explains why that mindset is foolish for the current market conditions.

If you want to play it smart during a housing bubble, renting is the best thing you can do. Renting is not risky. Unlike the people who bought in the last decade (or those who plan to buy in the next five years), renters have nothing to lose.

When home prices begin to fall, homeowners stand to lose 100 percent of their investments. As equity erodes, any money they put down on their homes will disappear. But that’s just a start.

Prices are predicted to fall back to 1997 levels. If this happens, it will be devastating to homeowners who bought their homes in the last 10 years.