Mortgage vs. H1B visa
For immigrants, does having a $500k+ to 1 million mortgage feel similar to the uncertainties and pressures of being on an H1B visa? #mortgage #housing#technology
Mortgage is still manageable. In case you default, you close out the property and start renting again! Once you are kicked out of H1B, you again have to wait to win the lottery or accept lower paying job in home country or some other country
One can argue that having a predictable monthly commitment towards housing is one less uncertainty to deal with. But I do agree that if mortgage payment is not something you can continue to pay for at least one more year if in case you lose your job, you are indeed taking additional pressure.
Mortgage tension is short term. Once home appreciates say 10% you take no loss even if forced to sell. Only if value drops and you are forced to sell is it a concern. Typically homes appreciate over 3-5 year period. So you need to ensure your job will be stable for at least this much time. If lucky you can get significant appreciation early and even a small drop won’t impact you. H1b will be for much longer as you need to worst case wait till kid turns 21
This
I don’t worry either one
Pressures of h1b = having 10 500k+ mortgages with tenants going in and out every year
You can always abandon your equity in a house and step away. Or sell if needed and maybe recover a little equity. But for H1B there’s no fix. You have to leave the country if you don’t get selected.
If the house has positive cash flow, you won’t worry too much
If you have sleepless night in a half a million dollar plus home, then it might not be worth it. Ultimately, you have to be comfortable with your decisions. Maybe buy something that doesn’t make you anxious.
Yes, no and maybe. I was on an h1 for my first and second homes. Is it a huge risk, yes absolutely but you gotta live your life. You can't prevent risks from materializing but you can prepare for these uncertainties. So plan your finances well and hope for the best
How does having a mortgage cause uncertainties?
1. Because you will never be able to pay off a USD mortgage if living outside US. 2. Rent doesnt cover even 50% of monthly cost. 3. Selling prematurely means taking a massive hit.
Skill issue