“The government owns Fannie Mae and Freddie Mac. It subsidizes mortgage rates: low. They should use the home they bought as a starter home as an investment property. This is sensible investing. But this is not what most people do.  Young people who live in areas in which they cannot afford to buy a home are making a mistake, to this extent: they could have begun to develop equity by purchasing the first home with a 30-year mortgage. That is a tremendous opportunity missed. But they were going to miss it anyway. They were not going to use the property as an investment property. They were going to get on the treadmill of social status, buying ever larger houses in ever nicer neighborhoods.”

http://www.garynorth.com/public/12755.cfm

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