“Rental from 11 years ago used as an illustrative purpose to let you know that the suckers that pay my mortgage are paying much more than I do — which is likely the case with your $1 million condo as well. Do you really think they paid that much for it? Don’t kid yourself, you are covering their mortgage and likely more.”
I’m the guy with the $1 Million condo. Again what you just said is irrelevant. And to your point yes my landlord basically owns this place outright, so its all gravy to him. Good for him, I really like the guy. I mean we could also discuss that buying Microsoft stock in 1989 was a fantastic move. Then there are the people who bough MSFT in early 2001 and sold at a loss in 2003 because they had to liquidate their investments. Both myself and Cyphire have illustrated that you are literally throwing away money buying right now. That is just fact supported by hard data. Here is the way I see it, if you buy right now you are facing significant risk within the next 6 years. Life happens, loss of job, divorce, sickness, etc. If you are forced to liquidate that RE purchase made now within that time frame you could be facing significant financial losses which will be difficult to recoup. Personally I am not willing to take that risk. What we witnessed in the RE Boom was the evaporation of risk for this asset class, that’s what propelled the excesses we see unwinding right now. Right now we are at a stage where the concept of risk is coming back into this asset class. It will be ugly. This is nothing new, it has happened many times before.
