BRS,
Why would you want to pay all cash for a home in an area that wasn’t inflated ?
Leverage & OPM is still the way to go.
With a fixed rate mortgage, you end up paying back in cheaper dollars, and if you invest well, you come out way ahead of the game, esp after an inflationary period.
There are areas that are totally immune to the bubble, and even if they decline a bit, I’m willing to bet that they recover and rise faster than our local market.
Having rentals that pencil out in bubble immune areas offer great leverage and depreciation at a much better return than CA. There are tenants almost everywhere.
If it pencils out now, any appreciation should just be a bonus.
Kewp, not sure what your debt % rates are, but there are huge amounts of money available via balance transfer offers that extend interest at 4% or 5% for a few years, leving the cash available at your disposal.
I don’t think there is anything wrong with MANAGEABLE debt.
Save the cash as a cushion and make the monthly payments, esp when you can earn more on the cash than the debt is costing you.
You are pretty conservative, but I don’t think you will be having any financial difficulties any time soon! Good for you.
