Thanks for your reply bsrsharma. Your four points all have speculative elements and a if it doesn’t work out you send the key’s to the lender. That last part tells me even you know it is gambling.
Don’t get me wrong I fully understand the value of borrowed dollars getting cheaper to repay. I also understand that potential buyer’s wake up one day and realize all that house “ain’t all that” and refuse to make the gamble pay off? Alternately, our economy can reach a point where all that money can’t so easily go to shelter because it is needed for other things or not so easy to get. What about the possibility the the leveraged buyer’s income stream suffers a shock? What about staying up all night worrying about it and having it negatively effect life and relationships and basic happiness? Now that we are both speculating, what’s wrong with letting inflation and/or a housing correction catch up before taking the plunge? It has the same effect and less risk. In fact if the average Joe does it this way he can be relatively rich after a period of time.
I could see taking a little more risk, rationalizing it with your theories, if the property in mind was a potential money maker instead of a guaranteed money pit. Those scenarios I tinker with almost everyday.
Raptorduck. Sorry if I was a little rough today. The comment about your wife shopping was really meant to be a response to the idea that “not buying your wife a house could be a big mistake”. I should have directed it that way. We need to cooperate with our spouses and sometimes find compromises not capitulate because of what ever the consequence of some “mistake” might be. Lots of guys have come on here and said “can’t hold the wife back anymore” and stuff like that. I know you have not. In my case my wife cares way less about a house than I do.
