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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: morokko65 who wrote (264882)7/29/2010 10:31:07 AM
From: bentwayRead Replies (1) of 306849
 
"How does Real Estate perform in hyperinflation? like a tangible asset, or a paper asset?"

usagold.com

"Real Estate: Farmers and holders of urban property seemed to benefit if their property was mortgaged; the inflation soon wiped out the mortgage debt. However, they received no income, as noted above, since rents were frozen. After the stabilization, heavy new taxes and the urgent need for cash forced most holders to remortgage their property, often more heavily than originally, so that their gains were illusory. Still, those who held real estate throughout managed to save the capital thus invested. However, those who sold during the inflation (often through desperate need for cash) fared poorly. Because it brought no income, real estate sold at extremely low real price levels during inflation."
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