Will our Debt continue to be bought by other countries?
My opinion on the World economy, our deficit and how they will affect our RE and home buying. Well, I will keep it short but in summary- as our deficit and debt continues to grow it seems inevitable that soon other countries won’t be able to or won’t want to buy our debt. How far away is that? The pressure of this along with other factors has to drive up interest rates. So, if buying a home is difficult now how will it be with 8, 10 or 12% interest rates? Everyone asks are we at the bottom? I don’t know? I know prices are extremely affordable. I know we haven’t seen prices this low with interest rates this low in 30 years. So if you can get a home for another 10-15% less but you have double the interest rate- which is better? A low manageable payment due to a low interest rate seems like a good budgeting tactic? Scenario (taxes the same just PI payment) -A $180,000 at 4%, 30 yr mortgage payment= $859. Now let's say the home drops 10% $162,000, and you buy at 8%, 30 yr payment = $1188. You let me know what is better? Is it an investment or a home? Are you looking at the benefit if it appreciates and you are there 15 years. What is your quality of life?