How To Become a Real Estate Baron
Interest rates won’t stay as low as they are now. The Bush administration and its cronies in Congress are increasing our country’s debt at an amazing rate. Bush’s successor is going to need to figure out a way to pay back that debt, and the most likely way he or she will do it is by devaluing our currency through inflation. This will drive interest rates up. Way up. I remember mortgage rates of 18% (and higher) back when we were paying off our Vietnam War debt, and how those high mortgage rates depressed housing prices. Check these numbers…
$1500 monthly payment, 30 year mortage at 6% = ~$250,000 mortgage.
$1500 monthly payment, 30 year mortgage at 12% = ~$145,000 mortgage.
$1500 monthly payment, 30 year mortgage at 18% = ~$100,000 mortgage.
See the pattern here?
Obviously, the ideal way to make money in real estate is not to buy now, but save like mad, then step in and buy with cash when interest rates get so high that hardly anyone can afford a mortgage. Most people don’t think that, in a practical sense, owning a home with a $250,000, 6% mortgage costs about the same as owning a $145,000 home with a 12% mortgage.
This only works if you can save up (or inherit or steal) enough cash to buy property during interest-induced real estate downturns without a mortgage. And you’d better believe that plenty of the rich beneficiaries of the Satanists who now masquerade as Republicans who currently run the Federal government are drooling at the chance to grab housese at bargain prices during the next round of inflation. Then they’ll rent them out to people who can’t afford to pay high mortgage interest, and will jack the rent every year to match the rate of inflation.
This is a traditional way to turn a modest fortune into a huge, multi-generational one. And with the Dynasty Tax (what the Satanists call the “death tax”) gone, it’s going to be an even better way to become the American equivalent of a medieval lord during the next round of inflation than at any time during the past 100 years.