> Of course, if you can find an investment that's guaranteed to go up, of course you should leverage yourself to the hilt.
It's worth pointing out that the post I'm replying to stated that housing prices generally track inflation, which is upward. My point is simply that leverage permits a return higher than inflation under those circumstances. I wouldn't claim that housing prices are some sort of "sure thing," and I don't think I did.
> And also by you
Yes, but the difference is I know I'm speculating.
Unless you've got some actual data to bring, I'm not interested in a guessing contest.
> It's worth pointing out that the post I'm replying to stated that housing prices generally track inflation...
Well, my point is that if you leverage yourself in an investment that just tracks inflation, you're running in place. Leverage doesn't do anything in real terms here. The number value in your bank account might go up, but your real purchasing power doesn't.
That was my point, that in this situation leverage doesn't help you, and that fundamentally if you're trying to use leverage in this situation, you're hoping that housing prices rise faster than inflation does.
It's worth pointing out that the post I'm replying to stated that housing prices generally track inflation, which is upward. My point is simply that leverage permits a return higher than inflation under those circumstances. I wouldn't claim that housing prices are some sort of "sure thing," and I don't think I did.
> And also by you
Yes, but the difference is I know I'm speculating.
Unless you've got some actual data to bring, I'm not interested in a guessing contest.