Net worth is also subject to systemic market losses, cash is (nearly) only subject to inflation losses, which are easier to mitigate. 15year mortgage don't really have any advantages, the 1% rate difference is nothing compared to what you could earn with the sacrificed cash and it's far less than the risk taken on potential equity fluctuations.

I'm not a fan of letting money just sit in the bank because the interest rates are embarrassingly low and I would actually be losing money if you factor in inflation.

In another 200 markets, prices increased by 20-to-39 percent.San Francisco, Nashville and Pittsburgh are among the 15 percent of housing markets around the country where prices have actually risen above their prior peaks in the mid-2000s after adjusting for inflation.

What about apperictaion on the house or inflation values?

I see it as a breakeven typically until inflation causes rents to go up and cashflow the property and/or you build equity and sell.

I think they paid cash or 1/2 cash because 1) they are leery of stocks and 2) bonds will go down with interest rates 3) banks pay less than inflation.

@Johnnie FairIts an excellent plan - you will get first dibs on HUD homes as an owner occupant.... although using long term financing will allow you to acquire more property more quickly, double your hedge against inflation, and keep more of your cash in your bank acct.....  

The Federal Reserve tightens its monetary policy by raising the federal funds rate to curb inflation if it is rising too quickly. 

I believe it was Schiller who also found that, over all of US history, residential real estate appreciates at about the rate of inflation.  

It could stagnate and inflation could make my property soar in value, or a natural disaster could take place and force everyone out of Denver.