Samsung group chairman Lee Kun-hee has died

Re:Samsung group chairman Lee Kun-hee has died by smabie on Sunday October 25, 2020 @12:05AM (#24883755)

I don't think zeroing out home equity to buy bonds is a bad idea.

After all, you either have real estate exposure or some other one, bond or equity exposure. While I haven't done the analysis, I would venture to guess that investment grade bonds at the very least have lower volatility than real estate.

[ Parent | on HN ]

Re:Samsung group chairman Lee Kun-hee has died by stanrivers on Sunday October 25, 2020 @12:24AM (#24883830)

Do you think the investment grade bonds are going to yield better than the interest rate on a home mortgage ?!?

[ Parent | on HN ]

Re:Samsung group chairman Lee Kun-hee has died by rgbrenner on Sunday October 25, 2020 @02:09AM (#24884175)

Yeah I doubt a bond would pay that well.. but he does have a point about risk exposure. Your mortgage could be thought of as an investment in the local real estate market.. diversifying that risk by buying shares in a REIT could be a good strategy... especially if you're in a low-growth area (ie outside of the big cities, midwest, etc).

[ Parent | on HN ]

Re:Samsung group chairman Lee Kun-hee has died by H8crilA on Sunday October 25, 2020 @06:36AM (#24885272)

Hey, here's a shockingly simple idea: don't buy a home if you don't want equity, rent instead.

[ Parent | on HN ]

Re:Samsung group chairman Lee Kun-hee has died by smabie on Sunday October 25, 2020 @03:57PM (#24889382)

There are systematic advantages to having a mortgage vs renting.

[ Parent | on HN ]

Re:Samsung group chairman Lee Kun-hee has died by smabie on Sunday October 25, 2020 @03:58PM (#24889402)

Maybe not, but you can easily move into lower grade and higher yield debt depending on the interest rate of your mortgage.

[ Parent | on HN ]