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As someone with a few very wealthy friends, this is not always true. It does however help to close a deal faster than someone who wants to purchase the same pro
by charlesdm 10y ago
As someone with a few very wealthy friends, this is not always true. It does however help to close a deal faster than someone who wants to purchase the same property using a mortgage.
1. Interest rates matter, because if they're low, they'll usually invest their money elsewhere / pay the interest / pocket the difference. They'll often do a deal "cash" (meaning, without debt) and refinance later.
2. Using debt to offset taxes matters too.
- jondubois 10y agoBut surely you must agree that wealthy people do drive up property prices more than mere high-income earners. Just look at the case of Mark Zuckerberg's purchases in Palo Alto (as an extreme example): First he bought a house for $7 million (which was widely regarded as massively overpriced at the time). Then he ended up buying all adjacent properties for $30 million. In a few short years, he single-handedly contributed to a massive increase in property prices in his entire neighbourhood. This is essentially the story of San Francisco's property market over the past 10 years.
- charlesdm 10y agoOf course, because high income != wealth. It's only the first step. It could become significant wealth if they saved + invested it well, but most high earners are excellent at spending it all. Just look at the amount of bigtime basketball / football players who remain with nothing a few years after they stop playing.
- nstj 10y agothis could benefit if you qualified what very wealthy means
- deleted 10y ago[deleted]