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Non-Tech : Investing in Real Estate - Creative Opportunities
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To: John Vosilla who wrote (1660)6/5/2013 5:23:35 PM
From: Jurgis Bekepuris  Read Replies (1) of 2722
 
What a lot of crap.

Let's take where I live. In Boston area, which is considered expensive by most people.
Rent on my house still would be ~6% if not higher from the current appraised price (and I think that's close to market).
I am borrowing <3X annual salary with 25% down. No way to get less than 25% down with 3.5% 30 year mortgage.
And that's in Boston. An expensive market. I can't even talk about places like Chicago where you can get deals way better AFAIK.

3.5% 30 year mortgage is THE BEST INVESTMENT EVER! How often anyone loans you money for 30 years at rates that only AA-AAA companies get? How often these rates have nowhere to go but up? This mortgage is worth its weight in gold and I should have gotten two-three more if I could... :) Ask Buffett what he thinks about that.

Yes, you do have to hold the house and not sell it for 30 years to keep the mortgage. I'm willing to go with that. If you can't hold the house, the mortgage is not as valuable, since you lose it as soon as you sell.

Let's say we get a modicum of inflation. It does not matter whether the house price appreciates or falls. I'd still be paying pennies at my 3.5% interest rate AND the rent would be going up (that's the definition of inflation, no? :)).

But no. Some guy immediately concocts a doomsday scenario and tells to everyone to hide in a nuclear shelter. What a crock. The only risk is a long deflationary period, but that's another story... :)
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