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What if the dollar is about to take a dip that it's never been seen before and people are locking out wealth into these homes, would that be a bad thing? I'm no

What if the dollar is about to take a dip that it's never been seen before and people are locking out wealth into these homes, would that be a bad thing? I'm not talking about very expensive homes in very desired places, recently the mid covid trend to buy homes outside large cities due to not having to be in close proximity to offices made prices go up significantly. It may sound like a bad deal but if one takes a mortgage now for x amount (which seems high), that amount would mean a lot less in the not so distant future so even if prices come down a bit it might still be a potential good achievement.

burlesona 6y ago
This is my guess. We’re busy monetizing our national debt, and real estate is the first sector that is calibrating to the new (much lower) value of the dollar. I would love to be wrong about that, btw. I think it’s going to be brutally painful for anyone who rents, and will effectively be like giving the entire country a pay cut and lowering the minimum wage.
AnimalMuppet 6y ago
It depends on your situation. When inflation hits, is your income also going to go up? Is it going to go up as the inflation hits, or after the inflation hits? Do you have enough financial slack to survive until inflation makes the mortgage cheap? And in fact, one could argue that the inflation is already here, it's just not evenly distributed. It's in financial assets - stocks and real estate, and maybe Bitcoin, but not so much in everything else.
zeckalpha 6y ago
The rising prices could be a sign of a dip already happened (assuming other prices are climbing)
throw0101a 6y ago
> What if the dollar is about to take a dip that it's never been seen before and people are locking out wealth into these homes, would that be a bad thing? The US dollar will still be worth a dollar in the US (hello tautology). It's "value" relative to other currencies and most other goods doesn't matter if you make US wages and buy a US house.

burlesona 6y ago

This is my guess. We’re busy monetizing our national debt, and real estate is the first sector that is calibrating to the new (much lower) value of the dollar. I would love to be wrong about that, btw. I think it’s going to be brutally painful for anyone who rents, and will effectively be like giving the entire country a pay cut and lowering the minimum wage.

AnimalMuppet 6y ago

It depends on your situation. When inflation hits, is your income also going to go up? Is it going to go up as the inflation hits, or after the inflation hits? Do you have enough financial slack to survive until inflation makes the mortgage cheap? And in fact, one could argue that the inflation is already here, it's just not evenly distributed. It's in financial assets - stocks and real estate, and maybe Bitcoin, but not so much in everything else.

zeckalpha 6y ago

The rising prices could be a sign of a dip already happened (assuming other prices are climbing)

throw0101a 6y ago

> What if the dollar is about to take a dip that it's never been seen before and people are locking out wealth into these homes, would that be a bad thing? The US dollar will still be worth a dollar in the US (hello tautology). It's "value" relative to other currencies and most other goods doesn't matter if you make US wages and buy a US house.