> Generally, with 20% down you are leveraged 5:1. So even if your home is just keeping pace with inflation of 3%, you actually experience 15% growth on your investment.
But if inflation is 3%, you're probably paying 3% (or more) interest on your loan.
So suppose your home costs X. You pay 0.2X downpayment and borrow 0.8X through your mortgage. The first year your home appreciates to 1.03X but you also pay around 3% of 0.8X = 0.024X in interest. So your gain is 0.03X appreciation - 0.024X interest = 0.006X: which is exactly 3% of your 0.2X downpayment! Looks like the leverage didn't help in this scenario at all.
Of course if you bought in the Bay Area a few years ago you made bank, but that's because the growth here happened to be much faster than inflation, even without leverage.
> Sure, you can be leveraged in other investments but (1) your interest won't be tax deductible, (2) your interest rates won't be nearly as low, and most importantly (3) you won't be able to borrow with no recourse
(3) is true, but you can buy stocks on margin, the interest is deductible as a business expense, and interest rates are often lower than mortgage rates.
I've built two source management systems (NSElite, internal to Sun, and bitkeeper, now open source at bitkeeper.org).
Calling Git sane just makes it clear that you haven't used a sane source management system.
Git has no file object, it versions the repo, not files. There is one graph for all files, the repo graph. So the common ancester for a 3 way diff is the repo GCA, which could very well be miles away from the file GCA if you have a graph per file (like BitKeeper does).
No file object means no create event recorded, no rename event recorded, no delete event recorded. If you ask for the diffs on "src/foo.c" all Git can do is look at each commit and see if "src/foo.c" was modified in that commit. That's insanely slow in a big repo. And it completely ignores the fact that src/foo.c got moved to src/libc/foo.c years ago and there is a different src/foo.c that is completely unrelated. There is an option to try and intuit the renames when you are spitting out diffs but noone uses that because it's even more insanely slow.
Git is basically a tarball server. Calling that a source management system is an enormous stretch. Calling it a sane and powerful source control tool is just not supported by the facts, calling "the most ..." is laughable.
Yeah, I get it, Git won. You all lost out on "the most sane and powerful" as a result. Which sort of doesn't matter since everyone thinks GitHub is source management.
But if inflation is 3%, you're probably paying 3% (or more) interest on your loan.
So suppose your home costs X. You pay 0.2X downpayment and borrow 0.8X through your mortgage. The first year your home appreciates to 1.03X but you also pay around 3% of 0.8X = 0.024X in interest. So your gain is 0.03X appreciation - 0.024X interest = 0.006X: which is exactly 3% of your 0.2X downpayment! Looks like the leverage didn't help in this scenario at all.
Of course if you bought in the Bay Area a few years ago you made bank, but that's because the growth here happened to be much faster than inflation, even without leverage.
> Sure, you can be leveraged in other investments but (1) your interest won't be tax deductible, (2) your interest rates won't be nearly as low, and most importantly (3) you won't be able to borrow with no recourse
(3) is true, but you can buy stocks on margin, the interest is deductible as a business expense, and interest rates are often lower than mortgage rates.