You are viewing a single comment's thread from:

RE: Buy P.M's & Bitcoin-Wait to buy a house.

in #investing8 years ago (edited)

I live in Phoenix AZ, our prices are still going up on the lower priced homes. It's pretty flat in the higher priced and once you go above 2 million it's going down. If hyper inflation does hit soo. and you bought with a fixed rate you should be fine because hyper inflation will eventually wipe out your mortgage. If you owe 100,000 dollars and the dollars aren't worth anything then you don't owe anything. And even if rates go up an they hold off hyper inflation your cost of you already own a home at a fixed rate is wont change. You beggin to see a lot of wrap type financing and assuming other people's loans. And doubt they will be able to hold off hyper inflation...I'd say if you are renting and aren't planning on leaving the country now is still a good time to buy. Mainly because here mortgage payments are cheaper than rent..

Sort:  

I agree that traditionally buying when rents are this high is a better idea. But again this is a short term outlook and my opinion is not based on mortgage rates that you will face later, purely on increasing your purchasing power in the future so you have no mortgage. Housing prices will crash below 2008 levels. Remember as well that hyperinflation does NOT increase those assets that are mainly driven by credit, rather it is deflationary for these assets. This is because credit is impossible to obtain during a hyper inflationary scenario. Food, gas, household products skyrocket as people lose confidence in cash. Also, the vast majority of people will not see wage increases so their traditional purchasing power disappears, with this comes major limitations on bank withdraws as banks seek liquidity through depositors funds. This slippery slope will continue until all faith and confidence is lost in the system (which is backed by only faith and confidence), at this time people will be thankful they purchased PM's and some crypto-currencies. My point being if you have 100,000 left on your mortgage and need to pay it off, you need to be able to access said $100,000 and it wont be through the banks or your bank account. Though I understand your stance, I believe this will be the end game for the USD as the world reserve currency which means we need to understand what that ultimately means for the USD and our current debt filled credit market. Then again maybe all debts will be forgiven during the reset! Who knows, but I rather try and leverage investments so that no mortgage is necessary if that is possible. Thanks again for commenting!

Coin Marketplace

STEEM 0.16
TRX 0.16
JST 0.032
BTC 59615.63
ETH 2524.32
USDT 1.00
SBD 2.44