I agree with all the post, and I arrive to say that also regarding houses smart people earn interest instead of paying it.
I mean that if people knew some financial mathematics they would easily understand that it is much cheaper to rent a house, and save and invest the difference between rent and mortgage, than paying a mortgage.
Both times I bought houses with in five years or less, it was cheaper to pay a loan then rent.
Originally Posted by Diapositivo
Mortgages make people poor. Buy a house when you have the money to pay it cash, I say. A mortgage is a way to pay interest on a large capital. Saving is a way to earn interest. A mortgage instalment is much bigger than a rent for the same house if the market is in a normal state. The monthly difference, properly invested for the long term, will buy a house faster than the mortgage.
I have had my present house since 2001. In the first five years, it doubled its value. In the last five years with the Great Baby Bush Depression, the value has increased 30% more. It is all about location, location, location.
Warning!! Handling a Hasselblad can be harmful to your financial well being!
Nothing beats a great piece of glass!
I leave the digital work for the urologists and proctologists.