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John51

Why I'm Happy Losing Money As A Landlord

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http://www.dailyfina...house-mortgage/

And when interest rates rise?

Sure he has the answer to that one as well...

H... C...... is a financial planner and the publisher of the popular personal finance blog, Money Q&A, where he answers readers’ wide-ranging money questions. He often writes about retirement, investing, insurance, saving, and other money matters. With a Masters degree in finance and years of experience, H... brings a wealth of knowledge and practical advice to his readers and is not afraid to tackle the tough financial questions.

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US mortgages are pretty much all fixed rates

of course, there was no subprime in the USA.

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Like most investors, I'm not a big fan of taking a loss. But for many accidental landlords, the choice comes down to whether you want to take a large loss now or small ones for years in the hopes of a housing rebound. I'll choose the latter.

He basically admits he is in a lose, lose situation. B)

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You would expect to pay $300 a month into a pension, so what actually is his 'problem'? dry.gif

Its paying $300 each into a portfolio of 'pensions' that would worry especially as the 'renter class' is gradually getting poorer and having less job security,

This idea that society owes you a pension is laughable. It means someone else has to work (be productive) because you have decided you don't need to.

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US mortgages are pretty much all fixed rates

That's not true. 20 or 30 year fixed rate mortgages are available, but a lot of people opt for cheaper variable rate mortgages. Reading this guy's article, I seriously doubt that he would have taken the more conservative approach of getting a fixed rate. He's in for a seriously long wait for the price of his house to recover. The southeast of the US has the loosest planning regulations in the states and most cities have plenty of room for expansion. There's no real reason for houses to increase in price above the cost of construction.

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Like most investors, I'm not a big fan of taking a loss. But for many accidental landlords, the choice comes down to whether you want to take a large loss now or small ones for years in the hopes of a housing rebound. I'll choose the latter.

He basically admits he is in a lose, lose situation. B)

That's the classic definition of a long term 'investment'.

A trade that went wrong.

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"My wife and I bought our house in the Southeast at the height of the housing boom. We paid top dollar for our three-bedroom, 2.5-bath home."

"Hank Coleman is a financial planner... ...With a Masters degree in finance and years of experience..."

:lol:

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