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> and property values sometimes fall

While this is true in the short term, except for very rare exceptions, you'd be hard pressed to find a property in the United States that is worth less now than 30 years ago (which is the standard length of a mortgage). I don't know about other countries, but I suspect it's the same in any modern economy. Land is scarce, and no one is making more of it.




Agreed -- what I had in mind was the underwater loans of 2008. A house bought with leverage can occasionally look real strange in the short-term.




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