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marcus
@
2010 Oct 13, 12:20am
marcus
@
2010 Oct 13, 12:20am
Oh, and one other thing. What if the kind of place you are paying $2000 to rent, can't be found for price that has a mortgage payment near that ? It depends on the market. There was a time when a place with a rent of 2k could be bought for a mortgage payment of well under that. But that was before everyone thought real estate was an investment/ inflation hedge, that's sure to go up up up.
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you can now get a 30yr mortgage at 3.875% for 0 points
https://www.google.com/comparisonads/mortgages?s=1&kw=interest%20rates&cat=2&ca_fam&schema=refinance&q=interest%20rates#ti=7
While Patrick's argument that house prices will fall as interest rates go up is debatable, I suspect the worse case scenario is a wash, where your cost of renting until this may happen will cancel out any price drops. e.g. if you're paying $2k/month to rent the same house then after 5 years of waiting you're out 120K. I doubt you'll find houses 120K cheaper in 5 years!
#housing