REALLY? CNN money has a story suggesting you use the equity in your first home to help you with a down payment on a second home. REALLY? Are they kidding? Is that just one of many things that people did in 2005 and during the recent housing boom and got us into the Great Recession?
How many times have you read story's about people then losing both homes? Sometimes the first home was one they had owned for 20 years or so.
Don't get me wrong. Real Estate is a great investment right now. But if you have money in one piece of real estate, maybe you should just leave it there. If you have money in stocks or a savings account and that's not making you much money, maybe that's what you should use. Always consult a financial advisor because these questions are so personal to your specific financial life.
Right now, homes are selling well in may areas, especial home for sale in Phoenix. And many believe, including me, values will continue to go up for about the next year. However, I admit the values have gone up in the last year faster than expected, but I have a hard time believing they will continue and get us back into another bubble. If they do, and you use your current equity for another home, that's a big risk.
Think of Las Vegas, you're at the craps table and your up $50k. If the right dice come up, you win, if not, you lose. Can you afford to lose?
http://money.cnn.com/2013/08/16/pf/expert/home-equity/index.html
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