http://blogs.bu.edu/law/2012/04/20/access-to-wealth-in-a-complex-economy-part-4-buying-your-dream-neighborhood/ In their own words: BU Law Student Blogs Thu, 06 Dec 2012 16:44:08 -0500 hourly 1 http://wordpress.org/?v=3.1.4 http://blogs.bu.edu/law/2012/04/20/access-to-wealth-in-a-complex-economy-part-4-buying-your-dream-neighborhood/comment-page-1/#comment-4227 Vinit Nijhawan Sat, 21 Apr 2012 15:32:22 +0000 http://blogs.bu.edu/law/?p=2436#comment-4227 Nice blog David. Most people have their main financial asset locked up in the value of their house. On average house prices increase at 6.26% in the US and people leverage that asset with mortgages say 5:1 (ie 20% down payment). With mortgage rate at say 4% that means your 20% downpayment will provide a 3.1% return so the rule of 72 suggests that your house asset will double in 24 years or so. Most people purchase their first house in their late 20s when they have their first children so your house asset becomes valuable to finance children's college. Nice blog David. Most people have their main financial asset locked up in the value of their house. On average house prices increase at 6.26% in the US and people leverage that asset with mortgages say 5:1 (ie 20% down payment). With mortgage rate at say 4% that means your 20% downpayment will provide a 3.1% return so the rule of 72 suggests that your house asset will double in 24 years or so. Most people purchase their first house in their late 20s when they have their first children so your house asset becomes valuable to finance children’s college.

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