lifeizfun — I think you make a lot of good points in there. I tend to be very sympathetic with your point of view… the “value” in the house investment is taking advantage of these super-low subsidized rates, and the ensuing grinding down of your real monthly pmts via inflation. However, you have to actually keep the house indefinitely to benefit from that, which is why I think buying is a good move for some but not for others.
jstoesz – I am not sure that analogy is right, because in Argentina houses were transacted in US dollar terms. Prices plummeted, as you say — but in dollar terms. But how did they do in the local currency, which also plummeted? And more to the point, how much are they worth now in the local currency as compared to before the hyperinflation. Unfortunately I do not know the answers to these questions. I’d be really interested to hear if anyone does. (Please note, this is not a prediction of hyperinflation here… I just think it would be instructive).
