>> >> >> 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! > > You are doing the same thing as Geoff. Adding assumptions to the borrowing model that started this discussion. I have never seen an interest rate for borrowing tied to inflation. They are always fixed rates.
There are other reasons why I don't borrow money. The biggest one is figuring out the risk required to pay back the loan. Risk involves two calculations: what is the inflation rate and where would I invest the money to earn more than I would pay back in interest. I am retired so my risk would be very high since I don't have the income to cover the loan. _______________________________________________ Post Messages to: [email protected] 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.
