Question

Is leveraging a house a good thing and why?

Answer 1

Answer-

Leveraging a house may not be a good thing or idea as the amount of debt needs to be paid and the present situations are not conducive as there has been severe ongoing crisis.

This is not only applicable to present scenario but in general from many situations in the past.

The 2008 crisis lead to the housing bubble due to levderaging and the cause of the crisis was mainly due to drastic fall in housing prices. The leveraging of house can lead to defaults if one looses employement or is not able to repay the loans.

The present scenario of the pandemic outbreak has led to lot of uncertainity and the economic  recovery may be delayed due to severe crisis engulfing most of the countries. The uncrtainity in the employement market and job losses adds to these adverse situations.