NR: Miro Circle, Scripps Ranch, town homes

[kcal09]

[quote=SD Realtor]I cannot think of any good reason why to throw down alot of cash when money is so cheap today. Most investors including myself are taking advantage of rates to procure property. While an argument can be made for using cash to buy an owner occupied home, (sleeping better at night) I am not so sure that is the case for a rental. To each his own though. I think substantial opportunity will be there for those with cashpiles (that are not eaten away by inflation) when we have high interest rates. Liquidity is something that is of the utmost importance, at least to me in uncertain times like this.[/quote]

Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.

[Rich Toscano]

[quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.

[Rich Toscano]

[quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.

[Rich Toscano]

[quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.

[Rich Toscano]

[quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.

[Rich Toscano]

[quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.

[bluehairdave]

[quote=Rich Toscano][quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.[/quote]

I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.

[bluehairdave]

[quote=Rich Toscano][quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.[/quote]

I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.

[bluehairdave]

[quote=Rich Toscano][quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.[/quote]

I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.

[bluehairdave]

[quote=Rich Toscano][quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.[/quote]

I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.

[bluehairdave]

[quote=Rich Toscano][quote=kcal09]Savings accounts are not yielding anything and the stock market is too risky for me. I’m sitting on enough cash to buy an investment property outright without going through the hassles of applying for a mortgage.[/quote]

That may be the case right now, but it makes more sense to think about what savings accounts will yield (or whether other options will be too risky) on average over the entire duration of the mortgage, not just right now.[/quote]

I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.

[Rich Toscano]

[quote=bluehairdave]
I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.[/quote]

You seem to equate higher rates with robust economic growth, but those two things don’t necessarily need to go together. (The Greeks are the latest to demonstrate that).

In a sense, anyway, it’s beside the point. Even in the (exceedingly unlikely, imho) event that rates do stay low for five years, you would still have 25 years left on a 30 year mortgage. My point was that you ned to consider potential returns over the entire life of the mortgage – not just what’s happening right now, and not a near-term forecast either.

[Rich Toscano]

[quote=bluehairdave]
I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.[/quote]

You seem to equate higher rates with robust economic growth, but those two things don’t necessarily need to go together. (The Greeks are the latest to demonstrate that).

In a sense, anyway, it’s beside the point. Even in the (exceedingly unlikely, imho) event that rates do stay low for five years, you would still have 25 years left on a 30 year mortgage. My point was that you ned to consider potential returns over the entire life of the mortgage – not just what’s happening right now, and not a near-term forecast either.

[Rich Toscano]

[quote=bluehairdave]
I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.[/quote]

You seem to equate higher rates with robust economic growth, but those two things don’t necessarily need to go together. (The Greeks are the latest to demonstrate that).

In a sense, anyway, it’s beside the point. Even in the (exceedingly unlikely, imho) event that rates do stay low for five years, you would still have 25 years left on a 30 year mortgage. My point was that you ned to consider potential returns over the entire life of the mortgage – not just what’s happening right now, and not a near-term forecast either.

[Rich Toscano]

[quote=bluehairdave]
I think it is risky to just assume interest rates will rise and savings and bonds will pay much more in the future.

We are already in the middle of what might turn out to be called The Lost Decade for the US. Same principles apply except our precipitous crash wasnt caused by raising interest rates but the bubble itself bursting. I personally am not counting on any large rise in interest rates within the next 5 years OR much growth either for many years.

There are very few things that actually create money in the US anymore. Almost all of the largest money makers and new firms are all service and advertising related. All of the internet companies and financial companies just move money from one place to another and most of that money that is in the system is debt. Just the way it is. No hot economy coming anytime soon. The Govt cant do much more and there isnt much out there to create new money, jobs or earnings besides service. Hasnt been for many years. The last bubbles were all created by Govt. intervention including housing.[/quote]

You seem to equate higher rates with robust economic growth, but those two things don’t necessarily need to go together. (The Greeks are the latest to demonstrate that).

In a sense, anyway, it’s beside the point. Even in the (exceedingly unlikely, imho) event that rates do stay low for five years, you would still have 25 years left on a 30 year mortgage. My point was that you ned to consider potential returns over the entire life of the mortgage – not just what’s happening right now, and not a near-term forecast either.

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