Real Estate During Inflation ––>Hyperinflation

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  • Sun, Jul 04, 2010 - 02:39am

    #21
    Peak Prosperity Admin

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    Re: Real Estate During Inflation ––>Hyperinflation

[quote=Tycer]

Methinks they will move pretty quick to insure that we, the people, are not allowed to capitalize on our gold investments and steal that land from them.

[/quote]

Surely you mean that we will not be allowed to keep them from stealing from us.  Laughing

  • Fri, Jul 30, 2010 - 08:56am

    #22
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    Re: Real Estate During Inflation ––>Hyperinflation

Interesting to read that the normal house loan in US is on 30 year fix rate.

In Sweden (and similar in all of Europe) the typical house loan is on a much shorter timespan.
The most commonly used house load today is on just 3 months, so in the event of high inflation or hyper inflation the burden will quickly be passed on to the normal house owner.

The longest period banks normally lend out is 10 years.

Here is a quick list of todays interest rates so you get a feeling:
3 months 2.06%
1 year 2.22%
3 years 3.29%
5 years 3.97%
10 years 4.53%

If you made the choice today with theese numbers, what timespan would you lock your mortgage on?

  • Wed, Sep 22, 2010 - 08:01am

    #23
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    Re: Real Estate During Inflation ––>Hyperinflation

[quote=Thechaz]

Wow Switters, 30 year fixed rate mortgages don’t exist in NZ – the longest I have seen is 7 years and it is currently running at 9.1% (1 year fixed is 5.5% so what does that tell you!) plus our prices are even more inflated than yours! 

How can a lender survive lending below inflation? Our banks never let that happen 🙁

[/quote]

The government is behind 90% of mortgages now. The two government-backed corps (Fannie Mae and Freddie Mac) and the Federal Housing Administration purchase mortgage-backed securities from all the banks so the banks don’t have to hold the loans.

The Fed has made interest rates near zero for banks and also purchased $1.5 trillion in mortgage-backed securities. Therefore, there is a major government subsidy (funny how many real estate agents are against welfare for the poor).

Poet

  • Wed, Dec 01, 2010 - 07:40am

    #24
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    Re: Real Estate During Inflation ––>Hyperinflation

I live in Australia where hyper inflation has already occurred without a crash.Houses are so expensive that first home buyers are completely locked out the market (most expensive in the world) and living costs have skyrocketed. We are supposed to be in a financial  boom, thanks to China, but most people are struggling to meet costs even though our unemployment is apparently low (I could dispute this).

Anyway, our situation is that we have saved a considerable amount of cash which we have in the bank. We want to buy a home to live in (we currently rent) but we have been waiting for the real estate bubble to pop. From the current slow down, it looks like it might be just starting.

We are worried that the banks could collapse before we buy a property. If we buy now, we will pay far too much. Any ideas how to protect our hard earned savings while we wait?

  • Wed, Dec 01, 2010 - 09:31am

    #25
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    Re: Real Estate During Inflation ––>Hyperinflation

Believe it or not, but many people do not want to be millionaires, they just want to be financially comfortable, and is a real area being.If you are financially comfortable you are always worried about how and where the money will come. Custom homes

  • Wed, Dec 01, 2010 - 09:35am

    #26
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    Re: Real Estate During Inflation ––>Hyperinflation

Believe it or not, but many people do not want to be millionaires, they just want to be financially comfortable, and is a real area being.If you are financially comfortable you are always worried about how and where the money will come.Custom homes

  • Thu, Dec 23, 2010 - 12:30pm

    #27
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    Re: Real Estate During Inflation ––>Hyperinflation

[quote=davinci7]

Anyway, our situation is that we have saved a considerable amount of cash which we have in the bank. We want to buy a home to live in (we currently rent) but we have been waiting for the real estate bubble to pop. From the current slow down, it looks like it might be just starting.

We are worried that the banks could collapse before we buy a property. If we buy now, we will pay far too much. Any ideas how to protect our hard earned savings while we wait?

[/quote]

You could convert your cash into PMs with a GoldMoney account. IMO it is very safe and very easy to get back into currency. Goldmoney.com

  • Sun, Jan 16, 2011 - 06:30pm

    #28
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    Re: Real Estate During Inflation ––>Hyperinflation

During inflation a lot of companies will go bankrupt but Real estate Austin TX is increasing profit

  • Thu, Feb 02, 2012 - 10:27am

    #29
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    I think this forum has got

I think this forum has got many experienced people view.It provides good chances of discussion.Any research firm may be helpful in this regard.I think there is something which may prove useful for you.

license course real estate  |  real estate licence course

  • Thu, Feb 02, 2012 - 03:25pm

    #30
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    Woodman wrote:This question

[quote=Woodman]

This question was addressed briefly on the Financial Sense podcast in response to a listener question, I think on the program of the 21st.  I recall that they stated gold would probably appreciate faster than real estate.  One issue is that rents get locked in for the period of lease so it’s hard to raise rents fast enough to keep up with inflation; therefore, commercial property at least will not increase its income generation fast enough to keep up with inflation and property values would be affected by that.  A personal home you might look at differently, I don’t know.  The impact of inflation in general would seem to depend on how much your wages increase relative to the price of goods and services, though fixed rate debt would not change in theory.

[/quote] Thanks for a great explanation about inflation. Where can one find additional information on  houses for rent and the correlation of inflation on the market? Could you provide more information as to how inflation works along with goods and services?

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