Re:Tech bubbles are bursting all over the place
by shrimpx on Tuesday May 17, 2022 @06:00PM
(#31416803)
I guess my core question is: do they keep the cash in the house, or do they use cash just as a vehicle for the purchase, and then finance the cash out of it?
Because there was a concurrent trend to refinance houses at 2% loans and put the cash in the stock market, which is assumed to beat that 2% over the duration of the loan.
Re:Tech bubbles are bursting all over the place
by dionidium on Friday May 13, 2022 @09:15PM
(#31374204)
And just to make the connection explicit: if lots of buyers are making competitive offers because rates are low and money is cheap, then that's going to encourage the people who can afford to pay cash to make an all-cash offer where otherwise they might not have.
Cash transactions have less friction and chance of falling through, so it makes sense that sellers prefer cash purchases. Consequently, you see cash offers because buyers know that sellers prefer - you essentially jump to the front of the line.