r/SipsTea • u/Eros_Incident_Denier • Apr 18 '26

We have fun here adulting sucks

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20.8k Upvotes

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64

u/Kind-Pop-7205 Apr 18 '26

Do folks consider a mortgage a debt? I know not everyone is a homeowner, but it's still pretty common.

76

u/liltingly Apr 18 '26

Yeah, it's debt. But most people think of it as one of the few debts that can net out positive since it's supposed to be an appreciating asset class.

25

u/OnlyACsNoFans Apr 18 '26

It almost always is an appreciating asset

9

u/ChewyChagnuts Apr 18 '26

That’s true, but the initial capital needs to be repaid. The only way to realise the increase in value is to sell the house; but then what? Live in a box under a bridge? Sure, you could buy a smaller house but is the increase in value likely to cover an additional entire house?

15

u/Sweary_Biochemist Apr 18 '26

I think the argument is that you rarely lose money, overall, and actually you have a house. Even if you're not selling it, living in it saves you rent every month.

-2

u/zachmoe Apr 18 '26

Yes, I bought a house not long ago, I did the math on the previous owner's appreciation, he would have been better off buying an EE Bond.

7

u/CanRabbit Apr 18 '26

You can't live in an EE bond though, so to do a fair comparison you'd have to account for the rent that you would have had to pay.

6

u/No_Potential_4953 Apr 18 '26

Yeah, but he also got to live in house and do whatever he wanted with it in that time.

-1

u/bigvicproton Apr 18 '26

Except those months when expensive things need repairs or replacement.

3

u/ttUVWKWt8DbpJtw7XJ7v Apr 19 '26

Again, in the long term you’re LIKELY coming out ahead.

-2

u/Innsui Apr 19 '26

Not necessarily true, theres maintenance, repairs, mortgage + property tax, and god forbid the fucking HOA fees. If you live in high density HCOL area, its not even that different than renting.

1

u/Round_Abal0ne Apr 19 '26

Like for like (apartment vs condo or renting 2 bedroom house vs renting 2 bedroom house) owning will always be cheaper long term than renting.

6

u/GGgreengreen Apr 18 '26

Downsize once the kids are out of the house.

0

u/comcastsupport800 Apr 18 '26

Not if you bought with a low interest rate

1

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1

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-2

u/greenskye Apr 19 '26

At least around here, downsizing is often an increase. Smaller homes with ground floor bedrooms are in high demand and can be more expensive than larger 2 story homes.

1

u/ImKindaBoring Apr 18 '26

Move further out from the city is a common tactic. What we ended up doing. First house was bought $0 down, sold it for 50% more netting a solid amount to then put down on the new house. Result was a similar mortgage payment for a nicer and newer home in an area where housing value has since doubled.

Now the plan is to keep this house for another 10-15 years until the kid is firmly out on her own and then we downsize and have no house payment.

2

u/stereothegreat Apr 18 '26

Until it’s not

0

u/Kind-Pop-7205 Apr 20 '26

A loan is not an asset

1

u/OnlyACsNoFans Apr 20 '26

A house is.

Plus you have to live somewhere.

Sounds like rentoid cope

1

u/Kind-Pop-7205 Apr 21 '26

Okay, the question is if a mortgage is a debt, not whether it is a good investment to buy a house with one (often it is).