Quote:
Originally Posted by margaretmattson
Higher interest rates does not only apply to mortgage rates. A potential cash buyer has an option. Invest the $500,000 and receive income or use the $500,000 to buy the new home. Many of my younger friends are choosing to invest rather than buy. They use their income to go on trips and to splurge on luxury items.
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I have to assume that your young friends already own a home as if they do not and have to rent, that investment income is pretty much used up and they lose the potential appreciation in a new home. If they already own a home that they are happy with I would agree that making their money work for them in this environment is a good thing.