- This topic has 200 replies, 22 voices, and was last updated 16 years ago by JWM in SD.
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April 27, 2008 at 9:46 PM #12582April 27, 2008 at 11:15 PM #195461jonnycsdParticipant
I agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!
Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.
April 27, 2008 at 11:15 PM #195492jonnycsdParticipantI agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!
Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.
April 27, 2008 at 11:15 PM #195517jonnycsdParticipantI agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!
Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.
April 27, 2008 at 11:15 PM #195539jonnycsdParticipantI agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!
Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.
April 27, 2008 at 11:15 PM #195579jonnycsdParticipantI agree in principle but do not think it will reach hyper-inflation levels. That said, 5% to 6% per year inflation compounded for 5 years would take a huge chunk out of the mortgage!!
Also, the strategy only holds if you want to buy and hold for ten years or more. The high rates we both expect will depress valuations in the intermediate term.
April 27, 2008 at 11:24 PM #195481stockstradrParticipantYes, and also my theory has an implied assumption that may not hold up: wages will keep pace with inflation.
I’m not sure that future typical raises will keep pace with inflation
April 27, 2008 at 11:24 PM #195513stockstradrParticipantYes, and also my theory has an implied assumption that may not hold up: wages will keep pace with inflation.
I’m not sure that future typical raises will keep pace with inflation
April 27, 2008 at 11:24 PM #195537stockstradrParticipantYes, and also my theory has an implied assumption that may not hold up: wages will keep pace with inflation.
I’m not sure that future typical raises will keep pace with inflation
April 27, 2008 at 11:24 PM #195559stockstradrParticipantYes, and also my theory has an implied assumption that may not hold up: wages will keep pace with inflation.
I’m not sure that future typical raises will keep pace with inflation
April 27, 2008 at 11:24 PM #195599stockstradrParticipantYes, and also my theory has an implied assumption that may not hold up: wages will keep pace with inflation.
I’m not sure that future typical raises will keep pace with inflation
April 27, 2008 at 11:38 PM #195501anParticipantI think salary inflation will be the only thing that can cause price to turn around, not commodity inflation. If we don’t have salary inflation, house price might drop even further in monthly payment term if rates sky rocket, because, at today’s payment, it still does not make sense when compare to rent. Rent won’t sky rocket if salary does not. If salary does not drastically inflate but everything else does, then we might see people having much less $ for houses, which might cause price to compensate.
April 27, 2008 at 11:38 PM #195533anParticipantI think salary inflation will be the only thing that can cause price to turn around, not commodity inflation. If we don’t have salary inflation, house price might drop even further in monthly payment term if rates sky rocket, because, at today’s payment, it still does not make sense when compare to rent. Rent won’t sky rocket if salary does not. If salary does not drastically inflate but everything else does, then we might see people having much less $ for houses, which might cause price to compensate.
April 27, 2008 at 11:38 PM #195558anParticipantI think salary inflation will be the only thing that can cause price to turn around, not commodity inflation. If we don’t have salary inflation, house price might drop even further in monthly payment term if rates sky rocket, because, at today’s payment, it still does not make sense when compare to rent. Rent won’t sky rocket if salary does not. If salary does not drastically inflate but everything else does, then we might see people having much less $ for houses, which might cause price to compensate.
April 27, 2008 at 11:38 PM #195580anParticipantI think salary inflation will be the only thing that can cause price to turn around, not commodity inflation. If we don’t have salary inflation, house price might drop even further in monthly payment term if rates sky rocket, because, at today’s payment, it still does not make sense when compare to rent. Rent won’t sky rocket if salary does not. If salary does not drastically inflate but everything else does, then we might see people having much less $ for houses, which might cause price to compensate.
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