1249: Compound Interest, Understanding Home Prices & Mortgage Payments in Real Dollars

32:04
 
Share
 

Manage episode 239044590 series 2294384
By Jason Hartman. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Jason Hartman starts today discussing the 8th wonder of the world, compound interest. It's a truly powerful thing that makes massive differences to your portfolio.

Then Jason talks with in-house economist Thomas to discuss housing payments adjusted for inflation. Thomas took Jason's first property he purchased and adjusted the payment it would have been to today's dollars to see how it correlated. The two also discuss negative yields and how much further cyclical markets have to fall.

Key Takeaways:

[4:43] Jason's old purchase of a mortgage note that didn't go so well, but the amount he's owed now shows the power of compound interest

[7:36] An example of compound interest using 4 $100,000 homes

[14:32] Robert Shiller believes we are on the verge of a recession, but Jason doesn't agree with his reasoning

[18:51] Housing payments adjusted for inflation is significant

[22:41] Millennials keep telling Thomas they're waiting for home prices to drop

[27:07] 25% of investment grade bonds have negative yields now

Website:

www.JasonHartman.com/Properties

362 episodes