[quote=4plexowner]”We’re counting on inflation to shrink the relative size of our mortgage down to lunch money within a few years”
how exactly do you think that will work?
you must be assuming that inflation will feed into wages – it’s possible but not very likely as unemployment rises
good luck with that one[/quote]
I was around to see what happened in the 70s and early 80s. “Lunch money” is an exaggeration unless we go into Weimar/Zimbabwe mode, but 10%+ inflation for a couple of years followed by some stabilization would sure knock a mortage down to size. Read some history if you weren’t around for the last episode. I did point out that there might be some dicey periods in the middle, but you have to bet on something.
[quote=otherposterwhosenameescapedme]I guess it depends on your definition of the hood.[/quote]
Encanto, Spring Valley/La Presa, Golden Hill, central El Cajon, to name a few.
[quote]But in some spots I see condos and some SFRs going for prices that put them at parity with rent, which should put some sort of floor under prices.[/quote]
Agreed, and there seems to be a lot of interest in anything that pencils out as a rental in the places we’ve looked into. Still, most “nice” neighborhoods are priced too high IMO and will have to come down quite a bit before normal people can afford them as either buyers or renters.
[quote]Of course I suppose rent could go down …[/quote]
Our rent has gone down in real terms over the three years we’ve lived here: we’ve had no rent increases in that whole time. It should have gone up 5-10% to keep pace with everything else.
