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>Partly because the state charges too little for the guarantees it offers, taxpayers are subsidising housing borrowers to the tune of up to $150 billion a year,
by HillaryBriss 10y ago
>Partly because the state charges too little for the guarantees it offers, taxpayers are subsidising housing borrowers to the tune of up to $150 billion a year, or 1% of GDP.
The current environment offers housing borrowers money at a price below the market.
The simplest bet with this cash (buying a house and holding) has probably been overdone in the market. House prices are quite high now.
Still, small but crafty borrowers should be able to profit with this cheap money.
- Domenic_S 10y agoBuy and hold is fine, but that's a strategy like buying Blue Chip stocks. Early 2000s real estate was like the options market -- super short term. If you can hold a house 10 years, chances are very, very good you won't be underwater at the end.
- jessaustin 10y agoAre you suggesting that small crafty borrowers spend the money on something besides the mortgaged house? I think that would be fraud. Or maybe you're just saying they should sell the house quickly? How would that profit?