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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (24623)	10/18/2004 11:45:10 AM
From: Joe S Pack	Read Replies (2) \| Respond to of 306849

Maybe it represents the early stages of massive flight from the dollar In a sense buying leveraged real estate is a short position on the US dollar. Grace can you elaborate a bit on this? Is it correct to interpret that a decrease in US dollar will result in increased house price and hence investing in a leveraged real estate is a hedge against the US dollar? Given the current sky high appreciation of real estate, is your point still valid? Does this mean that there is going to be further upward trend? Thanks, -Nat

To: GraceZ who wrote (24623)	10/18/2004 11:59:46 AM
From: jrhana	Respond to of 306849

<In a sense buying leveraged real estate is a short position on the US dollar> Thank you for an insight one rarely sees mentioned but that to me seems rather solid-It certainly goes against the grain of a large ocean of strident commentators who are predicting a collapse in both the USD and real estate. I agree with you for (at least) two reasons. One you can pay back the leverage in the future with cheaper dollars, and two in many areas there are a large amount of foreign buyers. As the dollar erodes this real estate will seem cheap to them.