couple of things to worry about for renters

[highpacific]

Do the math!

“The Mexico reference was just to illustrate that if you owe money and there is inflation, wages eventually go up and your loan is reduced.”

OK first the loan is not reduced. and if your wages go up you can still afford to buy a home. This argument for buying is nothing more than the same “homes will appreciate” argument that was used to sell homes during the bubble. Lets not forget where we stand right now. Home prices are comming down and wages have a long way to go to support it. We are not on the cusp of “wages rising” enough to support current prices.

Do the math, it will tell you when it is a good time to buy. And in a few months when you are wondering if it is a good time to buy yet. Do the math again!

[no_such_reality]

Do the math!

And while you’re doing the math, figure out how much house you’ll buy when gas is $12.35/Gal, milk is pushing $18.99/Gal and that Toyota Prius you want to commute to work and save on gas is $103,999.

That will be reality if the currency devalues.

[no_such_reality]

Do the math!

And while you’re doing the math, figure out how much house you’ll buy when gas is $12.35/Gal, milk is pushing $18.99/Gal and that Toyota Prius you want to commute to work and save on gas is $103,999.

That will be reality if the currency devalues.

[no_such_reality]

Do the math!

And while you’re doing the math, figure out how much house you’ll buy when gas is $12.35/Gal, milk is pushing $18.99/Gal and that Toyota Prius you want to commute to work and save on gas is $103,999.

That will be reality if the currency devalues.

[no_such_reality]

Do the math!

And while you’re doing the math, figure out how much house you’ll buy when gas is $12.35/Gal, milk is pushing $18.99/Gal and that Toyota Prius you want to commute to work and save on gas is $103,999.

That will be reality if the currency devalues.

[no_such_reality]

Do the math!

And while you’re doing the math, figure out how much house you’ll buy when gas is $12.35/Gal, milk is pushing $18.99/Gal and that Toyota Prius you want to commute to work and save on gas is $103,999.

That will be reality if the currency devalues.

[RDeNiro]

“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.

[RDeNiro]

“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.

[RDeNiro]

“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.

[RDeNiro]

“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.

[RDeNiro]

“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.

[svelte]

Two paragraphs from

http://money.cnn.com/2007/12/19/news/economy/fed_auctions/index.htm?cnn=yes

— begin clip from article —
These fears intensified later last week after the government reported that wholesale prices and retail prices both rose more than expected in November. And that has sparked fears on Wall Street of “stagflation,” a period of rising inflation and slowing growth.

Former Fed chairman Alan Greenspan used the term “stagflation” on an appearance on ABC’s “This Week” on Sunday.
—- end clip from article —-

Here it comes! 1970s all over again.

[svelte]

Two paragraphs from

http://money.cnn.com/2007/12/19/news/economy/fed_auctions/index.htm?cnn=yes

— begin clip from article —
These fears intensified later last week after the government reported that wholesale prices and retail prices both rose more than expected in November. And that has sparked fears on Wall Street of “stagflation,” a period of rising inflation and slowing growth.

Former Fed chairman Alan Greenspan used the term “stagflation” on an appearance on ABC’s “This Week” on Sunday.
—- end clip from article —-

Here it comes! 1970s all over again.

[svelte]

Two paragraphs from

http://money.cnn.com/2007/12/19/news/economy/fed_auctions/index.htm?cnn=yes

— begin clip from article —
These fears intensified later last week after the government reported that wholesale prices and retail prices both rose more than expected in November. And that has sparked fears on Wall Street of “stagflation,” a period of rising inflation and slowing growth.

Former Fed chairman Alan Greenspan used the term “stagflation” on an appearance on ABC’s “This Week” on Sunday.
—- end clip from article —-

Here it comes! 1970s all over again.

[svelte]

Two paragraphs from

http://money.cnn.com/2007/12/19/news/economy/fed_auctions/index.htm?cnn=yes

— begin clip from article —
These fears intensified later last week after the government reported that wholesale prices and retail prices both rose more than expected in November. And that has sparked fears on Wall Street of “stagflation,” a period of rising inflation and slowing growth.

Former Fed chairman Alan Greenspan used the term “stagflation” on an appearance on ABC’s “This Week” on Sunday.
—- end clip from article —-

Here it comes! 1970s all over again.

[Author]

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