Background: 34 years old, 70k salary, 125k savings (70/30 stocks/bonds), living in my parent's house (they live elsewhere).
Since interest rates are so low at the moment, I could get a mortgage at a fixed 2-3% with a 20% down payment (reducing my current investments). Taking into account that real estate has a rate of return similar to that of equities, it seems like a good idea to take advantage of the current cheap credit to invest a large amount now, that will pay off in the future. On the other hand, I don't need the house, so I would be endebting myself solely because I consider it is profitable given the economic circumstances, which is kind of a gamble (it's almost like asking for a loan to buy stocks, but in that case nobody would actually lend me the money).
What do you think?
Submitted January 07, 2018 at 06:22PM by MrDufrain http://ift.tt/2FeCvx9
