Quote:
Originally Posted by Yadkin
Buying at the top of the market, with mortgage rates now rising to Carter levels. What do you think is going to happen to the value of the home that you just bought?
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you make dumb assumptions. true, I bought near the top of the market. I had another home which I sold at the top of the market, so gains moved across laterally. homes go up, they go down, at the end of a day, its the cost difference which matters. only first time buyers are in tough shape buying at the top.
next up, I took the cash out and stuck it in an online savings account currently earning 2%, so my net cost of borrowing (not factoring tax ramifications or other) is .75%. that will go lower as rates go up. where the fk can you borrow money at .75%
on house two, its current value is mid 2 millions. if I chose to do so it would rent for >125,000 per summer season. the carrying cost is a mere 4200 per month.
none of this factors my ability to earn, my savings, or demand in the areas I own which could give me a fairly easy exit.
just because you and el douche bag think its a bad idea doesnt make it so.