So seeing MMT 2.0 in action I am learning that printing money with reckless abandon is good for stocks. (Hooray!) Some are worried now about inflation. Jerome Powell doesn't seem to be worried about inflation and aims to keep it at a low target rate, but as we have seen, the traditional inflation tools like CPI don't do a great job showing true inflation (some would say by design) when factoring in the cost of real estate, and iphones, and kids college education among other real world costs of a true typical consumer basket. Some alternative real world inflation indicies show inflation closer to 10%. (See the Chapwood Index - https://chapwoodindex.com/)

So with that being said...

Should one aim to put down as little as possible towards a primary home purchase? Schiller et al says that real home prices over time only beat inflation by about 1%. Not a great return. But say your interest rate is 2.4% and

So now add leverage into the mix. So at 10% down, you are 10x leveraged. So that 1.6% return results in a 16% return in year 1 of ownership.

So by my math, mathematically the best return for a home purchase with an interest rate equal to or less than expected inflation will always be the longest term length with the lowest downpayment.

Am I missing something?

So with that being said...

Should one aim to put down as little as possible towards a primary home purchase? Schiller et al says that real home prices over time only beat inflation by about 1%. Not a great return. But say your interest rate is 2.4% and

**inflation is a conservative...say 3%. So let's say the difference between inflation and interest rate is 0.6%. Add in a mortgage interest deduction and Schiller's 1% and carry the 1 and the return on your home "investment" has a very small but theoretically positive return of at least 0.6%+ Schiller's 1% historical real return =1.6%***true*So now add leverage into the mix. So at 10% down, you are 10x leveraged. So that 1.6% return results in a 16% return in year 1 of ownership.

So by my math, mathematically the best return for a home purchase with an interest rate equal to or less than expected inflation will always be the longest term length with the lowest downpayment.

Am I missing something?

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