homerenter

Thanks for the discussion. I've been worried recently about my cash being eaten away by inflation. What I've concluded is that cash needs to perform better than house prices, and not better than general inflation. I don't see cash reducing in value the same way I expect house prices to. For the poster above when I referred to 'discount' I was thinking of the last property on a new development which I could buy well below their asking price. Arguably the discounted price is simply what its currently worth so I guess I shouldnt be swayed by that. FWIW I love living in rented with no hassles and knowing I've got flexibility. --

I live in a rented house and have a chunk of money in savings accounts having sold my house. The interest on the money doesnt cover the rent. I could buy a house at a big discount at the moment. However I cant afford to buy where I rent (and thats where I need to be for about the next 2-3 years). I expect house price to go down but I also expect the value of my cash to go down. Why would I not buy a place and rent it out as an alternative to low paying saving accounts on my cash?