Really? Borrow $500,000 for a house at 10%pa while house prices are rising at an average 2%pa. Calculate in 30 years time how much you paid compared to how much the house is worth. YOU LOSE. Now try it the other way around. YOU WIN. Pretty basic really.
-----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Nicholas Geti Sent: Tuesday, 2 December 2008 9:13 AM To: ProFox Email List Subject: Re: [OT] How to determine if a market has hit THE bottom. ----- Original Message ----- From: "Geoff Flight" <[EMAIL PROTECTED]> To: "'ProFox Email List'" <profox@leafe.com> Sent: Monday, December 01, 2008 5:20 PM Subject: RE: [OT] How to determine if a market has hit THE bottom. That is not even close to true. Borrowers are better off if inflation is greater then the interest rate on the loan - otherwise they lose. Same applies to incomes: if your income rises more than inflation then you are ahead and vice versa. Simple mathematics really. That is plain wrong. Interest rate has nothing to do with the calculation. A borrower is always better off. In fact if you want to consider the interest rate on the loan, realize that it is a fixed amount based on the original face value of the loan and has nothing to do with the inflation rate. Therefore the interest paid in dollars remains the same. [excessive quoting removed by server] _______________________________________________ Post Messages to: ProFox@leafe.com Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
