“OK first the loan is not reduced. and if your wages go up you can still afford to buy a home.”

Let’s say you take out a loan right now and buy gold or some other asset with it. The dollar goes down another 20% in a year. You sell the gold and pay off the debt. Wouldn’t your loan in real terms go down 20% as well? That is what I mean. By the time this is over, if it takes 3 years for houses to hit bottom, hyperinflation could potentially bring the fundamentals up considerably. I’m trying to make the point that a loan denominated in dolars might be good to have. My second point was the fact that interest rates are 6% right now. Who knows what they will be in 2 or 3 years. Don’t get me wrong, I’d rather wait a couple of years and keep saving to buy a heavilly discounted home, but these are things on my mind that I think I need to consider. I am doing the math!! Right now I can buy a house for what I could have bought it in 2003. The question is, is it worth waiting for houses to keep dropping given the uncertainty of the valuation of the dollar and the possibility of inflation??? Maybe it is, I keep seeing the reset graph and can’t help but think that it has to continue going down and it will be worth waiting. But these are points to consider.