On: Lumber crash leads to 'blowout' sales as prices cr...

[tayo42]

Ehh I think it would be irresponsible to use all my savings like that, plus you need to buy the land to build on and pay for your current place

[Dylan16807 → tayo42]

You still end up owning the house, so it's more of a conversion in savings. And you'd probably be paying it off over time, with the help of ongoing income, if the mortgage rate isn't super high.

Land depends on where you go, no comment there, but keeping up payment on your current place during construction just means you end up paying for 21 years of housing on a 20 year mortgage, or 31 years of housing on a 30 year mortgage, not a big deal.

[tayo42 → Dylan16807]

hmm thats an interesting way to think of it.

[blitzar → tayo42]

Nothing wrong with having $1mil in a bank account, $1mil house, $1mil mortgage (yes naive / general example - but I am sure you can get the idea).