Buying with monopoly money

[Anonymous]

[quote=sdrealtor]Deadzone
I could talk economics all day (degrees in econ and accounting from Milton Friedman’s alma mater as well as MS in finance) but choose not to as I dont subscribe to ivory tower thinking. I live with my feet firmly on the ground and have learned from experience that economists are rarely even close to being accurate in their analysis or forecasts. Carry on adults.[/quote]

I agree with you on that one. When I refer to talking economics I’m speaking of the practical application as we debate here, not the bullcrap spewed in academia.

That said, the fact that higher interest rates would kill the housing market shouldn’t be controversial, it is not a bull vs. bear dabate, just an obvious fact.

[Anonymous]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.

[Anonymous]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.

[Anonymous]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.

[Anonymous]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.

[Anonymous]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.

[jpinpb]

[quote=deadzone]
I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.[/quote]

deadzone – lately I’ve been sharing your sentiments and applauded your posts.

On this, though, been thinking about it and financing @ about 4.5% today is probably a pretty good idea. My reason for thinking this is that when (not if, but when) rates go up, that money, even just sitting in a bank, could be earning quite a bit. I think most of us believe that rates will go up, just how long before they do and how high. But until that time, having the cash won’t be gaining much. So in that respect, I agree.

[jpinpb]

[quote=deadzone]
I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.[/quote]

deadzone – lately I’ve been sharing your sentiments and applauded your posts.

On this, though, been thinking about it and financing @ about 4.5% today is probably a pretty good idea. My reason for thinking this is that when (not if, but when) rates go up, that money, even just sitting in a bank, could be earning quite a bit. I think most of us believe that rates will go up, just how long before they do and how high. But until that time, having the cash won’t be gaining much. So in that respect, I agree.

[jpinpb]

[quote=deadzone]
I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.[/quote]

deadzone – lately I’ve been sharing your sentiments and applauded your posts.

On this, though, been thinking about it and financing @ about 4.5% today is probably a pretty good idea. My reason for thinking this is that when (not if, but when) rates go up, that money, even just sitting in a bank, could be earning quite a bit. I think most of us believe that rates will go up, just how long before they do and how high. But until that time, having the cash won’t be gaining much. So in that respect, I agree.

[jpinpb]

[quote=deadzone]
I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.[/quote]

deadzone – lately I’ve been sharing your sentiments and applauded your posts.

On this, though, been thinking about it and financing @ about 4.5% today is probably a pretty good idea. My reason for thinking this is that when (not if, but when) rates go up, that money, even just sitting in a bank, could be earning quite a bit. I think most of us believe that rates will go up, just how long before they do and how high. But until that time, having the cash won’t be gaining much. So in that respect, I agree.

[jpinpb]

[quote=deadzone]
I like your line of thinking and great job. But the problem is, what can you invest in today that will guarantee better than the 4.5% interest rate you would pay for the mortgage? There are some relatively higher yield corpoarate bonds but there is always higher risk associated with higher yield. Stock market is even riskier. Especially now with prices reaching 2-year highs you’d be nuts to put big money in there. Gold is also near its all time high so not the best entry point.

So I would say given the limited investment options out there is no point.[/quote]

deadzone – lately I’ve been sharing your sentiments and applauded your posts.

On this, though, been thinking about it and financing @ about 4.5% today is probably a pretty good idea. My reason for thinking this is that when (not if, but when) rates go up, that money, even just sitting in a bank, could be earning quite a bit. I think most of us believe that rates will go up, just how long before they do and how high. But until that time, having the cash won’t be gaining much. So in that respect, I agree.

[sdrealtor]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

You are my new hero!

[sdrealtor]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

You are my new hero!

[sdrealtor]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

You are my new hero!

[sdrealtor]

[quote=MountainBound]Piggs, I have been a loyal reader for 3 years. Sold my house that I bought in 1998 at the peak in 2006. Rented it back from ther “inverstor” that I sold it to. Three years later, he lost it in foreclosure and I bought it back at the Trustee Sale for less than I paid in 1998.

So here’s my question, since I now own the house free and clear, should I take out a mortgage at todays low rates and invest the proceeds? If inflation appears wouldn’t I be better off?[/quote]

You are my new hero!

[Author]

Posts