new buyers left behind in mortgage rush, page-79

Say I have $500k of equity in my PPOR, I could sell be debt free and have $500k in the bank.

Then what, I have to rent some where and while I could lock in for a year there is no guarantee that it will get renewed and if not I am looking to find another place and the hassle of moving.

And what to do with the money, $500k in the bank earning what 3.5% and I get taxed on that. Not enough to pay the rent.

Put that money on the stock market, well that would mean I have to many eggs in that basket and if things turn to shit, well.....

With $500k in the bank I could travel, buy a new car maybe a boat and enjoy life but how long is that money going to last, I am still some years off retirement age.

I choose to hang one to the PPOR, I can draw some equity if I want to travel, buy a new car or boat. In the mean time I have a roof over my head and don't have to think about the possibility of getting kicked out. I would also be quite comfortable that in time it will only increase in value.

As for renting out PPOR, while there are bad tenets out there most are good and with regular inspections you can get the bad ones out before they do too much damage. You can also get insures to cover that sort of thing.