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[quote=CA renter][quote=scaredyclassic]
I resisted this concept. I now embrace it grudingly. Price is meaningless. What you pay each month is all that matters.[/quote]
But price, along with interest rates, is what determines what you will pay each month.[/quote]
Its not that its totally unrelated but that its a secondary (or tertiary) consideration in determining effective demand.
I frankly could give a shit about the overall price of the place I buy. I know what people focus on but it makes no sense.
Lets take an example:
The price is 2 mil on a 3br/2BA place in NP (say Morley field near the park).
The loan is a 15 year IO at 1% (call it crazy seller financing)and you qualify for it.
The house is clearly overpriced but you would be fool not to buy it on those terms.
At that price you could get rich just renting it out.
The overall price here would be immaterial.
