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Author: BigHatNoCattle One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 749154  
Subject: Re: prpay mtg Date: 7/17/1999 1:46 AM
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There is also a financial/logical aspect that
no one seems to be mentioning (at least directly)
and that is the certainty that comes from actually
owning a home. You know (barring taxes) what
your housing costs will be for the forseeable
future. If you're renting, you become subject to
the whims of the housing market. I'm currently
living in Sunnyvale (Silicon Valley) and paying
$1690 for a ground floor 2-br/2-ba apartment
sucks! If I had retired several years ago, I may
have been expecting to pay $700/month for a much
nicer place.

Now, if I'd gotten some huge return on my nest
egg, then maybe I'd be outrunning the inflation
in the housing market, but I think my standard
of living would have taken a huge hit if I was
only getting the "standard" 10% or less.

Yes, if you are retired you can relocate to
avoid a rapidly escalating market, but who
wants to be forced to leave friends/family in
order to be able to afford to rent?

Am I missing something? Of course, paying x
a month for a mortgage when you could be
renting for *much* less might not make sense..

On a related note, I thought I'd have trouble
getting a mortgage as a 35 year old layabout
with $1 million in the bank and no job (or
intention of seeking one). Given that this is
where I want to be in a few years, is actually
getting a mortgage feasible? Will the bank
force me to put my investments in some silly
places in order to have some security? Getting
a $200k mortgage just so I can stick $200k
in a savings bond would seem kinda pointless..
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