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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Wyätt Gwyön who wrote (69979)1/7/2007 8:35:22 AM
From: TradeliteRead Replies (1) of 306849
 
<<in most previous RE "corrections", the dirty work is done by inflation in eroding real values.>>

Huh? In most real estate investments, inflation makes the monthly payments agreed to long ago at a fixed rate of interest seem like peanuts, as incomes rise. THAT is exactly why having real estate "equity" is profitable. If it didn't or hasn't worked for you, maybe you should just wait a while longer. Real estate should always be a long-term investment, and you shouldn't buy it if you don't have a plan for increasing your income in the future or can't wait for inflation to take the property value higher. Inflation is precisely why real estate is any kind of investment at all, for most people who borrow money to own it.
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