SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Srini who wrote (100998)2/6/2009 4:09:28 PM
From: Horgad  Respond to of 110194
 
If we get high enough inflation, there will be a mad scramble as people rush to spend all there money as fast as they can. Everything will inflate including houses, but everything will inflate at different rates depending on market fundamentals. So if the housing market is still bad when the high inflation hits, inflation in housing will under perform other assets.

That being said having your money "invested" in your house will be multiples times better for you than having it in cash. Maybe or maybe not it is going to far to try and figure out which asset will inflate the fastest. Maybe it is good enough just have assets over cash.

For the moment my house is paid off, but I have been tempted more and more to get a mortgage and find an asset that I think will inflate faster...



To: Srini who wrote (100998)2/6/2009 7:25:46 PM
From: RJA_  Read Replies (2) | Respond to of 110194
 
In Wiemar, houses were not such a good deal as there were:

1. Rent controls

2. Taxes.


Still better than Zimbabwe style notes.

What was best was

1. Hard asset income from over seas.

2. Gold.

3. USD (at that time, equivalent to gold).



To: Srini who wrote (100998)2/7/2009 12:29:01 PM
From: GST  Read Replies (1) | Respond to of 110194
 
Housing is not traded on international markets. Your domestic non-tradable assets will shrink in value as prices for internationally traded commodities soars. Your house, especially if it is a big one that gobbles energy, is about the worst investment you can make at this point.