Hi Leslie. Please see the answer I gave Chuck, but I want to be clear that I'm not qualified to give advice on this. Here are my thoughts though... One of the guys I listen to, George Gammon, who is a very smart guy and he knows what is coming, says that he does not own his home, but rather rents right now (I believe I am right on this), and he owns gold, silver and other investments and is waiting for the right time to cash in part of his gold and silver and buy investment assets with it. Chuck makes a good point about non-inflationary mortgages though. If it were me, I would put the minimum down on a house (the right house) with a fixed rate mortgage and put the rest into gold, silver and some mutual funds managed Peter Schiff's company. But then I'd really study the gold and silver experts, and get their perspective on when to sell and what to do with it when you sell. I don't know what is best for you, nor do I know that what I'm saying with the dollar crash is actually going to happen. I am confident that it is going to happen and am planning accordingly.
Any debt you owe will be a win. If you owe $200,000 in 2020 dollars and the 2023 dollars are worth half of that AND if your income has kept pace with the inflation, you will be way ahead. It is the holder of the note who loses. Just take your mortgage contract to a real estate attorney and make damned sure there are no inflationary clauses in it. I would not rent at this time. Rents can be adjusted to keep even with inflation. A mortgage without inflationary clauses is protection against runaway inflation. Get the longest term you can get. Make sure there is no pre-payment penalty in the loan. That way, should inflation really take off, you can pre-pay in 2020 dollars with what the dollar is worth in 2023 or 2025 or whenever the dollar's house of cards finally collapses.
Debt will be a win only if you own something that maintains it's purchasing power while the dollar collapses. For example, if you own a house and owe $100K on a fixed rate mortgage, and if the dollar hyperinflates so that it takes $10K to buy a loaf of bread, yes, the $100K is very cheap. But if you don't make any money because the business you work for went out of business, you still can't pay the $100k off. In this scenario however, the value of gold would probably maintain all of it's purchasing power. In other words, an ounce of gold that costs $2k now, could be worth $200k if the currency hyperinflates.
Hi Leslie. Please see the answer I gave Chuck, but I want to be clear that I'm not qualified to give advice on this. Here are my thoughts though... One of the guys I listen to, George Gammon, who is a very smart guy and he knows what is coming, says that he does not own his home, but rather rents right now (I believe I am right on this), and he owns gold, silver and other investments and is waiting for the right time to cash in part of his gold and silver and buy investment assets with it. Chuck makes a good point about non-inflationary mortgages though. If it were me, I would put the minimum down on a house (the right house) with a fixed rate mortgage and put the rest into gold, silver and some mutual funds managed Peter Schiff's company. But then I'd really study the gold and silver experts, and get their perspective on when to sell and what to do with it when you sell. I don't know what is best for you, nor do I know that what I'm saying with the dollar crash is actually going to happen. I am confident that it is going to happen and am planning accordingly.
Any debt you owe will be a win. If you owe $200,000 in 2020 dollars and the 2023 dollars are worth half of that AND if your income has kept pace with the inflation, you will be way ahead. It is the holder of the note who loses. Just take your mortgage contract to a real estate attorney and make damned sure there are no inflationary clauses in it. I would not rent at this time. Rents can be adjusted to keep even with inflation. A mortgage without inflationary clauses is protection against runaway inflation. Get the longest term you can get. Make sure there is no pre-payment penalty in the loan. That way, should inflation really take off, you can pre-pay in 2020 dollars with what the dollar is worth in 2023 or 2025 or whenever the dollar's house of cards finally collapses.
Debt will be a win only if you own something that maintains it's purchasing power while the dollar collapses. For example, if you own a house and owe $100K on a fixed rate mortgage, and if the dollar hyperinflates so that it takes $10K to buy a loaf of bread, yes, the $100K is very cheap. But if you don't make any money because the business you work for went out of business, you still can't pay the $100k off. In this scenario however, the value of gold would probably maintain all of it's purchasing power. In other words, an ounce of gold that costs $2k now, could be worth $200k if the currency hyperinflates.