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You are trying to time the market. Don't do that. When you are financially capable of buying a house, do it. Don't get take a variable rate mortgage. If you are
by MonkeyMalarky 4y ago
You are trying to time the market. Don't do that. When you are financially capable of buying a house, do it. Don't get take a variable rate mortgage. If you are stable on a 5 year fixed rate, the rest doesn't matter. Up, down, sideways, whatever.
- notch656c 4y agoIf you time the stock market wrong without leverage, worst case you lose all your money. Time the housing market wrong and you could rapidly have sizeable negative wealth. Toss in a forced sale in a divorce or something and you've lost both all the money you ever had but also the money you ever will up until bankruptcy filing after which no one but absolute sharks will rent you a place either. At that point MonkeyMalarkey will not be around to point you to the best dumpster to sleep behind... In the first para, you are optimizing for expected value by not timing the market. In the second para you should not be optimizing for expected value but rather assurity you don't end up sleeping behind the dumpster, so the advice may not be transferrable.
- Supermancho 4y ago> 5 year fixed rate, Or just buy it outright, with that kind of leverage.