lomiller
Penultimate Amazing
- Joined
- Jul 31, 2007
- Messages
- 13,208
I'd keep the money in the stock market and borrow money to buy the house. The key is to make sure it's a house you can afford for the high interest rate period we are likely to be in for the next couple years. Don't lock in a rate, they should drop eventually and you want to be able to benefit from that.
High inflation is good for the stock market long term. In the short term inflation can drive down stock prices due to fears of higher interest rates, but this is ultimately only a short term effect.
Typically central banks respond to high inflation by tightening the money supply which dives up interest rates and makes owning a house more expensive and slow the economy so fewer people can afford a house. This should make the actual purchases price a little more affordable, and result in an increase in value to that house when interest rates eventually drop.
Over the next couple years you will end up paying a lot in interest, possibly more than the return on the stock market investment but this should eventually reveres, just make sure you can afford the interest and mortgage payments in the meantime.
High inflation is good for the stock market long term. In the short term inflation can drive down stock prices due to fears of higher interest rates, but this is ultimately only a short term effect.
Typically central banks respond to high inflation by tightening the money supply which dives up interest rates and makes owning a house more expensive and slow the economy so fewer people can afford a house. This should make the actual purchases price a little more affordable, and result in an increase in value to that house when interest rates eventually drop.
Over the next couple years you will end up paying a lot in interest, possibly more than the return on the stock market investment but this should eventually reveres, just make sure you can afford the interest and mortgage payments in the meantime.