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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (82064)	5/23/2007 11:59:46 AM
From: Riskmgmt	Read Replies (1) \| Respond to of 110194

John; You are missing the point. Re:Remains to be seen if interest rates can remain so low. They are low now and you can lock them in now (fixed rate). So if you borrow $200,000 say at 6% and they inflate to 6%+, you are ahead of the game, rental returns are secondary. Also, during times of real inflation "things" cost more, all the things that go into building a home cost more. Homes that sold for $20,000 30 years ago were selling last year for $200,000 in this local. If this holds true for the next 30 what is your $200,000 house worth 2 mill? Of course, 2 mill in 30 ain't going to buy much more than $200,000 will today but then you didn't come up with $200,000 you borrowed it.