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

To: Lhn5 who wrote (36112)	7/24/2005 12:58:41 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 306849

If hyperinflation occurs the value in dollars of a property will so dwarf the debt that the debt will become meaningless long before the hyperinflation interval is done. The problem is that at the top of hyperinflation gold will already be at the level that reflects the worthlessness of the currency. Yes, the debt will be meaningless as long as it is paid off before the currency collapses and is no longer accepted. And nobody will be able to predict when the hyperinflation ends and therefore how long to wait before paying off the mortgage. Some people might gamble that the longer they wait the less the mortgage will be worth, however if they wait too long they might be prevented from paying it off because the financial system will collapse by then and the dollars will not be accepted. In summary, there will be some who win and some who lose, the winners will be those that will own their property outright coming into later stages of hyperinflation however, those that have the most debt will be winners in the initial stages of hyperinflation.