> Rich investors and companies effectively get to buy homes at a discount vs average joes.
Suppose you had $100,000 in cash, and buy a house for $100,000. You'll not be paying 5% interest on a mortgage. But if you did not buy the house, you would be investing that $100,000 for a 5% return.
So, you're either paying 5% on the mortgage, or foregoing 5% return for investing that money.
Suppose you had $100,000 in cash, and buy a house for $100,000. You'll not be paying 5% interest on a mortgage. But if you did not buy the house, you would be investing that $100,000 for a 5% return.
So, you're either paying 5% on the mortgage, or foregoing 5% return for investing that money.
The rich person is not getting a discount.