Concerning getting a fixed rate loan and investing it in gold:
Government adjustment of the principle will not prevent a strategic default. Keep the property jugged up, and the money in gold. If the feds adjust your principle for inflation, simply laugh at them, default, and walk away.
Buy a new house. At the depth of the Weimar Republic hyperinflation, an entire block of downtown Berlin was purchased with 25 ounces of gold ...
I just don't trust the government will allow strategic defaults to happen. They may treat mortgages as they do student loans in the future, especially since Fannie and Freddie own most mortgages now (as the government has taken over the student loan market too), and make that debt non-dischargeable through bankruptcy. I'm not a gambling man, though - loading up on mortgage debt to buy PMs is dancing with the devil, but that's just me. Maybe it will work out for people who play that game.
Concerning getting a fixed rate loan and investing it in gold:
ReplyDeleteGovernment adjustment of the principle will not prevent a strategic default. Keep the property jugged up, and the money in gold. If the feds adjust your principle for inflation, simply laugh at them, default, and walk away.
Buy a new house. At the depth of the Weimar Republic hyperinflation, an entire block of downtown Berlin was purchased with 25 ounces of gold ...
I just don't trust the government will allow strategic defaults to happen. They may treat mortgages as they do student loans in the future, especially since Fannie and Freddie own most mortgages now (as the government has taken over the student loan market too), and make that debt non-dischargeable through bankruptcy. I'm not a gambling man, though - loading up on mortgage debt to buy PMs is dancing with the devil, but that's just me. Maybe it will work out for people who play that game.
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