If you borrow a million dollars from the bank to build a house and then in five years that house is worth half a million…

I don’t understand much. What so bad about house losing value, if we never intended it as capitalistic investment?

Everything suppose to be “utilitarian” basis instead of ever-inflating “profit” basis that hurt majority, no?

Just my curiosity why deflation is a bad thing, other than monetary incentive system broke down and no one working (right now, monetary system still broke down on opposite spectrum due to purchasing power collapse, I assume?)

Edit: clarification

Profitable or not, a house is a shelter, not renting or trading item? (This is what I meant by capitalistic mindset, not about corporation, but the very profit mindset of human.)

Edit2: clarification2

Yes, same opinion on investment and passive income. All capitalistic nature. Impossible to earn passively unless someone or some machine enslaved, right? Yet everyone love passive income idea so much, pumping profit everywhere, more money more inflation, no? In the past, people might save years to a house, now, people earn endless passive income to no house, I think that’s the very reason to it. Passive income is somehow bad. (Not to be mixed with voluntary welfare system, passive income is auto sucking involuntarily, iinm)

Edit3: clarification3

So about the house worth dropping. In bookkeeping, historical cost don’t drop. However, future value inflation exist thanks to “profit future inflation”. So, we still have to settle book value of loan, I don’t get it how the value dropped though? A liability is a liability, not to be messed with “inflating fluctuating market value”, no?