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A comment on Why the government took home prices out of its main inflation index. Parent comment

Re:Why the government took home prices out of its main infla... by CincinnatiMan on Friday May 27, 2022 @02:35PM (#31533132)
I don't think it's that simple. Maybe if someone has lots and lots of investment homes, they may think that way, but someone owning a single home shouldn't be excited about its price inflating--it's not like you can sell it and reap the profits, because you'll just be buying another similarly inflated house.
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Re:Why the government took home prices out of its main infla... by adam_arthur on Friday May 27, 2022 @03:25PM (#31533783)
You can do a cash out refi and invest into other higher yielding cashflowing assets. People do this all the time for e.g. renovations, additions etc
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Re:Why the government took home prices out of its main infla... by CincinnatiMan on Saturday May 28, 2022 @01:42PM (#31542213)
You eventually have to pay that back though, right? So the benefit is fleeting.
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Re:Why the government took home prices out of its main infla... by adam_arthur on Saturday May 28, 2022 @09:27PM (#31545385)
If you cash out refi at 3%, and invest into 6% yielding asset, then you are permanently making 3% extra return on that money.

(of course there's risk etc)

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