Ferfal, Have been reading your blogs for a couple years now - great stuff! If you were able to go back before inflation times, and you had enoughcash to buy a nice home in a nice area, what would you do?A) Purchase the home with the cash, before inflationB) Purchase the home with the cash, after the inflationC) Buy gold/another currency with your cash before the inflation.Then when inflation hits, buy the home with the value of gold/another currency? I understand that timing is difficult, if not impossible in an economic scenario.
Though I am very interested in seeing how things turned out there in Argentinaduring those times. Take care out there! Jason
Hi Jason, keep in mind the following: The currency here is the pesos. Say you had 100.000 pesos cash. After the collapse you have that same paper money but now the cost is 100.000 USD… with a dollar costing 4 pesos. So you only have 25% of that same house, just because you waited a week too long.
Always talking very unlikely theory here, but if the USA economy collapses the same thing could happen with real estate. You guys wont end up buying houses in Euros, but all of a sudden when people feel that the dollar isn’t worth as much any more, prices will multiply themselves as the dollar looses value. If there’s a collapse, followed by a bank run, this could happen within days.
If you have enough savings and you want to make yourself such as “safety net”, gold sure is your best bet.Now, if you have the money and you don’t have a house, then I’d get a home given today’s prices. If you shop around you’re likely to find good offers that will hardly get any better. As of right now, a good house in USA costs the same as a good house in Argentina, and its not that Argentine prices are over inflated, its that US home prices are unusually cheap. Inflated property prices? Take a look at Europe. You can’t buy a 2 bedroom condo near to Barcelona for the same price you’d get a very nice 3 bedroom house in a lice location in most US States.