>Have 20k, banks give you a 250k mortgage at 3-4%

[Anonymous No.12516335]

Wait a few years, do a refinancing of the house that is another loan.
>Get tax free cash since you did not sell
>Use cash to buy a new property
>Wait for it to go up in value
>Take a loan with new property as collateral
>Invest into a new property


"hurr durr why do you don't rent anon"

Well tell me another legal way to control 500k or more tax free for the normal person

[Anonymous No.12516339]

>>12516335
>Wait for it to go up in value
I think I found the flaw

[Anonymous No.12516345]

>>12516339
Yeah, but peopel always need somewhere to live

[Anonymous No.12516356]

>>12516345
Credit determines house prices, whereby the credit injected into the system increases the value of collateral therefore creating the room for more credit. This is a feedback loop.

So you're saying the crash of 2008 didn't happen because people needed somewhere to live? and the crash of 2000 stocks didn't happen because pension funds need to buy stocks? And the mergermania didn't happen because companies always need to acquire?

[Anonymous No.12516357]

>tax free cash

Aren't you paying interest

[Anonymous No.12516360]

>>12516357
ok sure, but compare 3% it to 20-30% on capital gains

[Anonymous No.12516367]

>>12516356
No I am saying compared to other things this is the best way

Tell me one stock broker who loans you 500k based on 20k investment and do not ask for more margin if your positions don't cover the cash value

Then tell me one bank that ask for more money if you have a 30 yo loan agreement and house fluctuats in value

[Anonymous No.12516376]

>>12516360
Doubt you'll get anything below 10%

[Anonymous No.12516402]

>>12516367
Houses don't go up 300% a year. That's why you can lend so much for them. & when you do sell one house, the bank can say "thanks. we're using the profits and cash of this sale to paydown your existing debts. sorry xDDD".

Stop asking a fucking question and stating something in response like you're debating you retarted fucktard. I'm in a 1.5 million dollar apartment and just sold the house for 2. I know what the fuck i'm talking about

buy house and instantly refinance
buy stocks

this is the basic of any business you fucking retard

[Anonymous No.12516403]

>>12516376
wat

[Anonymous No.12516412]

>>12516403
I'm a young lad but when you refinance I assume it's taking out a loan on the mortgage at a higher interest rate? Also how easy is it to even do this?

[Anonymous No.12516419]

>>12516335
here you go you retard.
what country has 3-4% interest rates on mortgages that are at an lvr of 90+.
Property is more likely to be down in 3 years time than up in any country in the world, in the current environment.

banks changing from ltv to lti(loan to income) model in developed countries now. which is why the property bubbles have burst in most places.

[Anonymous No.12516429]

>>12516412
it's extending your loan based on a capital base sufficiently covering risk-weighted capital requirements for the bank.
i.e if a bank has 12.5% CET capital requirements then they'll say, wow, you have an LTV of 70, wanna take the other 15?
you pay similar interest on the refinanced cash

[Anonymous No.12516454]

>>12516419
Germany or Sweden almost, Sweden have 85% upper limit though

[Anonymous No.12516461]

>>12516412
not really, if you were a boomer buying in the 90s when rates was 8% you can refinance for 3-4% now with the appreciated value

[Anonymous No.12516492]

>>12516461
annoying kid lmao

>>12516454
no shit retard hence why i said 90+
look at the math in your original post lmao kys

[Anonymous No.12516494]

>>12516492
>still not getting my major point

[Anonymous No.12516507]

>>12516494
what is your point?
that realestate is a ponzi?
no shit mate learn some basic fucking economics lmao

[Anonymous No.12516525]

>>12516507
that no other asset class has the same LTV , and you can't take out cash as loans from stocks if you use a normal broker at 3% rate

[Anonymous No.12516536]

>>12516345
All western countries have declining birth rates and ageing population.

Imigration tries to stop it... but it is not a solution.

[Anonymous No.12516545]

>>12516360
Youll get around 9%

[Anonymous No.12517691]

>>12516545
9% what

[Anonymous No.12517803]

>>12516335
Posts like this just scream bubble

[Anonymous No.12517881]

>take all your money
>leverage it 5 to 1 to buy a single asset
>put a scumbag renter in it to trash it

free money bro

[Anonymous No.12518852]

>>12516335
Some tips:
Buy distressed property, foreclosures, auctions, off market stuff. Have the ability and means to rehab. Re fi and cash out. Invest in other property, rinse and repeat. If you think about selling, then try to do a 1031exchange to save on taxes. Hire a good property manager if you won't devote yourself to managing multiple units. Peruse the biggerpockets forums and podcasts.