Today’s popular argument of buying or renting

September 12, 2008 at 7:50 pm Leave a comment

someone(consumer report probably) brought up an interesting topic, “if you have $100 extra, would you contribute to your mortgage or invest it”.

In my own case, I prefer contributing it to my mortgage.

When talking about investment return, ppl always say that “look at previous decade, we gained a 10%  return annually”. Then ppl use this assumption(10% return) to calculate where we should put money in.

I deem in following 10-20 years, investment market will NOT continue this 10% return Since in last 20 years investment market were boomed by third countries’ demands, like raising China. After 20+ years development, those countries has stepped in a recession period economically. That means the demend side of market is going down, global economy trends to oversupply.

Therefore, putting money in a general investment product and waitting for the compounded miracle isn’t a good idea anymore. Myself, I am going to a “M” strategy, buying low risk(Mortgage/PPN/even GIC) and high risk (pre-IPO/CPC/hedge).

PS:calculator of buying vs renting, looks interesting.

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Entry filed under: Personal Finance.

Yale Money Whiz Shares Tips on Growing a Nest Egg : NPR One of my covers~hehe

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