Quote:Certainly, and your age has a lot to do with it.  However, think about this for a bit.  Why are loans so "cheap" right now?  Is real estate really a good investment?

 

With the way that the economy is right now, I wouldn't want to hold any debt, and I would rather invest money in something that isn't going to fail in the near future.  Consumer loans and real estate is going to take a huge hit in the near future.  Because money is "so cheap to borrow" right now is in fact what the problem is.  When and if the Fed decides to start raising interest rates, the economy is going to have to correct itself.

 

There is a false sense of security right now.  People seem to think that they can get loans, credit cards, cell phone plans, etc. at "cheap" rates all of the time.  That's all going to change soon.  Once interest rates start rising again, things are going to change.  Not only will the cost of consumer loans go up, but also loans that many businesses rely on in order to stay operational.  That in turn is going to raise the cost of products and services as well as possibly cost jobs.

 

Quite frankly, the economy is headed for a recession if not a depression very soon, and it will be on a global scale.  The global markets are dependent on the U.S. markets.

 

I agree that the economy is headed for a recession. You can also borrow money at a fixed "cheap" rate right now as well, so the feds raising the rates isn't really going to affect that.

 

Depending on what your goal is with real estate, I would argue it is safer than being in the market. If you go the rental route vs the flipping route, even with a mortgage, you can still make monthly income, have write-offs for insurance, interest, depreciation, etc, all the while having the property appreciate every year. If you are patient and do your due diligence, there are ways to make an income while still having loans. Plus, when the price of crude drops substantially or something happens with the Chinese markets, your home value doesn't drop 20% in a week.

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