[quote=AN][quote=patb]
obviously the OP is smoking crack.
California has a 50% state budget deficit.
California has a couple million surplus dwelling units.
So what’s the thing that’s going to drive property values?[/quote]
Inflation?[/quote]
Buying a house as a hedge against inflation incorrectly correlates money supply inflation with house price inflation. They are not the same.
It also assumes, if you take on mortgage debt to buy said house, you benefit by paying back the debt in devalued dollars. This is only true insofar as your ability to pay the debt remains constant in real terms.
In other words, if your salary, or pool of perspective buyer’s salaries don’t go up commensurately when it takes $30 FRN’s to buy a cheeseburger — and gas, food, electricity, water, etc. all costing more FRN’s — there’s even less FRN’s left over to pay that “devalued” mortgage.
Good luck with that plan.
Yeah, first thing I’m going to do when the value of all salary and savings are wiped out is go out and buy me a big-ass house.
If you actually believe your ill-liquid, non-portable, non-fungible, stucco crapbox with a high cost of carry (maintenance, insurance, mortgage, taxes, fees, etc.) with a big tax target bullseye painted on its side is a store of real value inversely to a currency devaluation — you really need to get over yourself and your delusional “home value”.
