The Power of Debt

So someone asked me the other day... should I buy a house?  Now, lets see...

I bought a Condo about 2 years ago, so lets see how this comes across...

SURE, but NO. 

2 Years Ago, I decided to take a bet on the market, and take on the additional debt of a home.  Here is my advise....

Don't... but DO....

My logic when I bought my house was to save $6,000 a year on rent.  Well, after HOA, and taxes, that got flattened... so do your numbers better then I did. 

Another reason was because I wanted to bet on the larger economy.  Basically, I wanted to gamble on this: 





as you can see, this is a look at money supply.... note, the M1 hasn't been crazy, but EVERYTHING ELSE has been.... debt has literally made money out of nothing.   that is pretty crazy... not gonna lie...

So I took a gamble on this..... this combined with the debt numbers, I see a trend of inflation.... right now, the official inflation number is 3.9%.  that means if you aren't making 3.9% return, you are losing money.... cool part of this; that is the OFFICIAL number, which is widely regarded as WRONG.

lets take something closer to the real number, say, 5%......

Now I bought, sadly, still on a bubble, and I am probably technically underwater.... so what am I counting on?  INFLATION.... I am counting on Inflation to save my mistake, and inflation to correct the market price upwards so I don't take a loss on all my equity....

yet this is a tax for those of us who are stupid enough to trust in G-d for our currency......

Did I mention that the current President basically has started trampling on the individuals right to make their own decisions?....  i.e. now a company can't select to provide specific, and decline specific benefits, but now they are packaged into one.... this kind of stiffles the free market doesn't it?... I mean, you are forcing something on someone who doesn't want to buy it... ahh... I'll need to come back and post some arguments I've had on that subject since this is clearly too deep to go into while I'm in economics mode....


SOOOOOOOO buy a house?... YES and NO... Buy it with NO INTENTION of living in it... live below your means right now, and rent.  you won't regret it.  you will get the debt benefit while leveraging your ability to move freely if you job moves.  Also, you will gain independance from what is effectively a weight around your neck.   NOW is NOT the time to be tied down to anything.... there are too many smucks that are.... don't be one of them.... right now, the rat race is being run by alot of people under water on their houses.  don't be a rat right now when you can be a cat.  be cunning, and keep your witts about you.  be ready to GO where the opportunity takes you.  in this market, your government is NOT on your side.  if they were, why would they be adding so much money into the money supply?.... they are trying to save "everyone" so now it is time for the shark investors to look into saving themselves by not being like everyone else.

I'm here for the american dream.... it is a long game you need to play.... don't have instant gratification anymore, it isn't worth being a rat when you NEED to be a cunning cat.

buy a house.... rent it.  don't fall into something that imobilizes your ability to move quickly and to react to major changes..... trust me.... more changes will come; and they won't be good.