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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Tradelite who wrote (4680)8/26/2002 2:43:47 PM
From: bozwoodRead Replies (2) | Respond to of 306849
 
My point is that the financial position of someone who pays $500k for an asset is not the same as the financial position of a person who pays $375k for that exact same asset. The cash flows may be, but not the future potential appreciation. Given your assertion, to the extreme, it seems you would argue that a property that can be bought at $50k at a very high interest rate would be equal to the same property bought at $500k at a very low interest rate. The future appreciation potential of the two scenarios is not the same.



To: Tradelite who wrote (4680)8/26/2002 3:27:49 PM
From: TheStockFairyRead Replies (1) | Respond to of 306849
 
If you were going to prepay a loan or pay it down quicker, say in 5 years, would you rather have low interest rates or low home prices?