Re:Home Price to Income Ratio
by onlyrealcuzzo on Monday September 20, 2021 @08:54PM
(#28600893)
Also relevant is the ability to get interest only loans.
If central banks are GUARANTEEING asset inflation of >2% - that's an 10% return on 5:1 leverage - that beats the S&P.
If you can get an interest only loan, and be cash-flow neutral - as long as central banks keep a mandate for assets to appreciate >2% (spoiler, they have to or irresponsible governments fail) - housing is a good investment.
It sucks that they've manipulated the market so much. But when >50% of the economy is debt and the cost of debt is price fixed, that's a lot of manipulation...
If central banks are GUARANTEEING asset inflation of >2% - that's an 10% return on 5:1 leverage - that beats the S&P.
If you can get an interest only loan, and be cash-flow neutral - as long as central banks keep a mandate for assets to appreciate >2% (spoiler, they have to or irresponsible governments fail) - housing is a good investment.
It sucks that they've manipulated the market so much. But when >50% of the economy is debt and the cost of debt is price fixed, that's a lot of manipulation...