[peterb]

In an inflationary environment, I would agree completely. But in a deflationary environment, the risk of losing the downpayment is fairly great. Assuming 5% to 20% plus closing costs, that’s a chunk of change I’d rather keep for myself. But, if you could get a zero down loan, that would be worthwhile, IMO.

In delfation, keeping the cash turns out to often be the best “investment” of all.

[peterb]

In an inflationary environment, I would agree completely. But in a deflationary environment, the risk of losing the downpayment is fairly great. Assuming 5% to 20% plus closing costs, that’s a chunk of change I’d rather keep for myself. But, if you could get a zero down loan, that would be worthwhile, IMO.

In delfation, keeping the cash turns out to often be the best “investment” of all.

[peterb]

In an inflationary environment, I would agree completely. But in a deflationary environment, the risk of losing the downpayment is fairly great. Assuming 5% to 20% plus closing costs, that’s a chunk of change I’d rather keep for myself. But, if you could get a zero down loan, that would be worthwhile, IMO.

In delfation, keeping the cash turns out to often be the best “investment” of all.

[peterb]

In an inflationary environment, I would agree completely. But in a deflationary environment, the risk of losing the downpayment is fairly great. Assuming 5% to 20% plus closing costs, that’s a chunk of change I’d rather keep for myself. But, if you could get a zero down loan, that would be worthwhile, IMO.

In delfation, keeping the cash turns out to often be the best “investment” of all.

[peterb]

If one was to act strictly within the letter of the law….getting a very low down payment loan that has a mortgage payment below comparable rents would make sense. You can write-off the interest payments and if the house doesnt hold it’s value, you can stop paying the mortgage. The only downside is ruining your FICO score for a while, losing your downpayment and having the IRS come after you for the portion of the debt that will be forgiven upon default.Could be an ok deal. Low down payment coupled with non-recourse loans is good upside wieghted risk, IMO. But I wouldnt take it in this market.

Our brilliant govt at work. Incenting, and in a way rewarding, risk.
But it’s still not “owning” the house. Just an investment vehicle that the govt has been nice enough to let the little guy still enjoy. To some extent.

[peterb]

If one was to act strictly within the letter of the law….getting a very low down payment loan that has a mortgage payment below comparable rents would make sense. You can write-off the interest payments and if the house doesnt hold it’s value, you can stop paying the mortgage. The only downside is ruining your FICO score for a while, losing your downpayment and having the IRS come after you for the portion of the debt that will be forgiven upon default.Could be an ok deal. Low down payment coupled with non-recourse loans is good upside wieghted risk, IMO. But I wouldnt take it in this market.

Our brilliant govt at work. Incenting, and in a way rewarding, risk.
But it’s still not “owning” the house. Just an investment vehicle that the govt has been nice enough to let the little guy still enjoy. To some extent.

[peterb]

If one was to act strictly within the letter of the law….getting a very low down payment loan that has a mortgage payment below comparable rents would make sense. You can write-off the interest payments and if the house doesnt hold it’s value, you can stop paying the mortgage. The only downside is ruining your FICO score for a while, losing your downpayment and having the IRS come after you for the portion of the debt that will be forgiven upon default.Could be an ok deal. Low down payment coupled with non-recourse loans is good upside wieghted risk, IMO. But I wouldnt take it in this market.

Our brilliant govt at work. Incenting, and in a way rewarding, risk.
But it’s still not “owning” the house. Just an investment vehicle that the govt has been nice enough to let the little guy still enjoy. To some extent.

[peterb]

If one was to act strictly within the letter of the law….getting a very low down payment loan that has a mortgage payment below comparable rents would make sense. You can write-off the interest payments and if the house doesnt hold it’s value, you can stop paying the mortgage. The only downside is ruining your FICO score for a while, losing your downpayment and having the IRS come after you for the portion of the debt that will be forgiven upon default.Could be an ok deal. Low down payment coupled with non-recourse loans is good upside wieghted risk, IMO. But I wouldnt take it in this market.

Our brilliant govt at work. Incenting, and in a way rewarding, risk.
But it’s still not “owning” the house. Just an investment vehicle that the govt has been nice enough to let the little guy still enjoy. To some extent.

[peterb]

If one was to act strictly within the letter of the law….getting a very low down payment loan that has a mortgage payment below comparable rents would make sense. You can write-off the interest payments and if the house doesnt hold it’s value, you can stop paying the mortgage. The only downside is ruining your FICO score for a while, losing your downpayment and having the IRS come after you for the portion of the debt that will be forgiven upon default.Could be an ok deal. Low down payment coupled with non-recourse loans is good upside wieghted risk, IMO. But I wouldnt take it in this market.

Our brilliant govt at work. Incenting, and in a way rewarding, risk.
But it’s still not “owning” the house. Just an investment vehicle that the govt has been nice enough to let the little guy still enjoy. To some extent.

[peterb]

Yup, just look at Visa’s profit margin. Or other card processing companies. Fee based. As long as they can maintain transaction volume, their ok. Middle man action…like realtors or any broker for that matter. They dont care where the market or the deal is going, just do the deal. That’s how they make money. No transactions, no money.

[peterb]

Yup, just look at Visa’s profit margin. Or other card processing companies. Fee based. As long as they can maintain transaction volume, their ok. Middle man action…like realtors or any broker for that matter. They dont care where the market or the deal is going, just do the deal. That’s how they make money. No transactions, no money.

[peterb]

Yup, just look at Visa’s profit margin. Or other card processing companies. Fee based. As long as they can maintain transaction volume, their ok. Middle man action…like realtors or any broker for that matter. They dont care where the market or the deal is going, just do the deal. That’s how they make money. No transactions, no money.

[peterb]

Yup, just look at Visa’s profit margin. Or other card processing companies. Fee based. As long as they can maintain transaction volume, their ok. Middle man action…like realtors or any broker for that matter. They dont care where the market or the deal is going, just do the deal. That’s how they make money. No transactions, no money.

[peterb]

Yup, just look at Visa’s profit margin. Or other card processing companies. Fee based. As long as they can maintain transaction volume, their ok. Middle man action…like realtors or any broker for that matter. They dont care where the market or the deal is going, just do the deal. That’s how they make money. No transactions, no money.

[peterb]

The senior currency usually is the strongest in times of global stress. For a host of reasons. I would not look for the US$ to be weak in the future. All currencies are now fiat. The US$ should rise in relative strength to all other fiats in the next leg down. It’s an ugly contest. Gold may test its Oct lows, but then return to its high soon thereafter.

[Author]

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