Downtown was dying. But based on my math, people are going to be moving back.
Three reasons: Interest rates. Gas prices. And the Internet. Let me explain.
Sure, real estate outside the city looks cheaper. But then we'd have to buy two cars.
And while the cost of a car is going up, the cost of real estate has come down, thanks to the collapse in interest rates.
I did the math.
Thirty-year Treasury bond yields have now plummeted to 2.5%. The ten year is down to 1.44%. You can thank the Federal Reserve, as well as the economic slump.
This is great news for a homeowner. We are in the process of refinancing a thirty-year fixed rate mortgage at 3.6%. The interest, of course, is deductible at the federal level. So after taxes the rate, on a net basis, is less than 3% ...
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