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In the US you can put 5% down and lock in your monthly payment forever. This is because the government subsidizes this. It’s an incredible trade and that’s why
by seibelj 5y ago
In the US you can put 5% down and lock in your monthly payment forever. This is because the government subsidizes this. It’s an incredible trade and that’s why any attempts at reform are lobbied so aggressively.
- blitzar 5y agoThe 'trade' in all this is not the appreciation of house price. Housing is a middling performing, high maintenance cost, depreciating asset. However, you can borrow against it cheaper than virtually any other asset in existence at absurd leverage ratios - and swap your cash flow for the ownership of the asset. So long as interest rates are at or below growth / inflation / or your salary increases - it is a good investment.