Nicholas Geti wrote: > ----- Original Message ----- > From: "Pete Theisen" <[EMAIL PROTECTED]> > To: "ProFox Email List" <profox@leafe.com> > Sent: Tuesday, December 02, 2008 12:55 PM > Subject: Re: [OT] How to determine if a market has hit THE bottom. > > > >> Nicholas Geti wrote: >> >> >>>> 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. >>>> >>>> >>> Refer to my previous note. How do you figure the house is worth less >>> after >>> 30 years. Not only do you pay with cheaper dollars but your house is >>> worth >>> more in dollar amounts. Your reasoning is goofy. >>> >> Hi Nicholas! >> >> That is a good question. Maybe adjusted for inflation? >> >> http://www.inflationdata.com/Inflation/images/charts/Annual_Inflation/inflation_Cumulative.htm >> >> or >> >> http://tinyurl.com/6e74eq >> >> -- >> Regards, >> >> Pete >> http://pete-theisen.com/ >> > > > And over that same period prices of houses rose astronomically. > Ok. So here's my advice for you two lads. Borrow as much money as you can at whatever interest rate you are asked. If the interest rate is tied to inflation or to nominal rate then THAT'S better than static interest. Go ahead! The world will be yours!
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