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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ayn rand who wrote (23677)	10/21/2009 4:06:33 PM
From: benwood	Read Replies (1) \| Respond to of 71407

A crashing dollar will hammer in a nominal bottom in the real estate market. I wrote about six months ago that I was considering hiding in some RE transaction to get through the possible worm hole of dollar --> ?? although I'm not keen on owning another property. I've loosely thought that next spring would be the sweet spot. Prices in my area are going up recently, but I think that's a stimulus/future-taxpayer-robber bounce primarily. However, as the reality of the dollar's dilution hits critical mass, it could ignite a rather fierce exit from the dollar, and RE will probably be high on the list. Hope those buyers realize that their RE taxes will skyrocket though. I expect my junior minors to be the canaries, though, and one was singing a sweet song today (nsu).

To: ayn rand who wrote (23677)	10/21/2009 4:14:03 PM
From: Amark$p	Read Replies (1) \| Respond to of 71407

Only if you have an assumable FHA loan... If rates go up from 4.5% to 9%, then value of house will fall 50% since no one can afford the higher mortgage payment.

To: ayn rand who wrote (23677)	10/21/2009 4:42:08 PM
From: Real Man	Read Replies (1) \| Respond to of 71407

Yes, especially if you use that to buy a golden bunker. Better yet, put some golden stuff INSIDE the house on all that loan cash, then foreclose and take the stuff with, leaving the bank with the house sans the gold. -g-

To: ayn rand who wrote (23677)	10/21/2009 5:45:36 PM
From: gregor_us	Read Replies (1) \| Respond to of 71407

Normally that would be the case. However, my view is strengthening that residential real estate during even the worst of any USD debasement will offer all the inflation protection of this: automobile ownership. Arable land, however, may offer much better protection. For anyone thinking of obtaining a USD loan against an asset, I would favor land at this point. The problem is that US residential real estate just doesn't give one the advantage it used to: access to high salary and earnings growth. We shall see though. I am open to being very wrong. But from what I see, US residential real estate has begun its next leg down. G