View Single Post
  #5  
Old 07-20-2012, 09:36 AM
SMPEP SMPEP is offline
Member
 
Join Date: Jul 2010
Posts: 880
Default Nope

Guess I'm the contrarian, but I don't see this as a good opportunity to buy a home at all. In fact, I would argue it's the worst time. Rates are low. Probably too low. At some point they will rise. Now we've seen in Japan this ebvironment can continue for 20 years ... but banking on that doesn't seem wise. Even predicting 5 years out is near impossible for the professionals.

So with rates this low, you know that when it comes to sell the home ... rates will be higher ... and therefore your house will be worth less money. Most likely a lot less.

If you never plan to sell, okay buy. If you plan to rent it out, Ok. Someone else is paying your mortgage (assuming you are doing this right). So who cares what the house is worth when you sell it. You essentially got an asset for free.

But the premise of the original question was an investing decision, whcih suggests you will sell at some point and aren't renting it ... and as rates rise, you will lose.
Reply With Quote