View Single Post
Kickaha
Veteran Member
 
Join Date: May 2004
 
2007-03-15, 23:53

I concur, but heard some interesting advice from a buddy of mine who bought a house in the Bay Area...

To maximize your investment, buy so that it is just plain uncomfortable for the first year or two. Eat ramen if you have to, and don't plan on renovating until year three. This gets you past the real-estate-as-investment taxes timeslot, to boot.

See, if you have a fixed rate (and you should right now,) then your payment will remain steady in the coming years, but the rate of inflation will make it less in real dollars with each passing year. So all else being equal, it will hurt less as time goes on. More pain now means bigger return later, since you put more into the investment.

In theory. In a hot market. I don't totally buy it, but coupled with the long-term mortgage, it's an interesting idea.
  quote