3 ms·
> thanks to historically low 30-year mortgage rate and low inflation, real estate is probably a better investment now than ever before Would an investor taking
by nuclearnice1 5y ago
> thanks to historically low 30-year mortgage rate and low inflation, real estate is probably a better investment now than ever before
Would an investor taking advantage of those low 30 year mortgages prefer low inflation or high?
It seems to me they prefer high. They pay the mortgage back in future dollars which are worth less.
- benmanns 5y agoYes. With enough inflation your house would become worth 10x and your mortgage now represents at most 10% of the new value. Fixed rate leverage is a bet that inflation is understated.
- Swizec 5y agoMy parents paid off their first apartment in 5 years instead of 20 because of inflation in Yugoslavia. You can no longer get fixed rate mortgages in that part of the world … wonder why
- asauter 5y agoOne may want a high interest rate while you hold the property but you want low/declining interest rate as you approach sale