Re:Asking rents in San Francisco continue to slip, but…
by imtringued on Tuesday April 27, 2021 @07:13AM
(#26954409)
Come on, you must be aware that the risk with this strategy. Asset prices could just as well go down, especially if PCE/PCI inflation goes up, which will cause the Fed to stop fighting deflation and then it will start fighting inflation and the tools for fighting inflation have had far better track record than the tools for fighting deflation.
If you must get into debt, then buy assets that net a future return based on productive investments. If you were to buy real estate, you would have to buy it because you are expecting to receive enough rent to pay the mortgage back based on current rents.
If everyone gets into debt and uses it for speculation then we would probably get to see the opposite, an even stronger deflationary wave than what we have had so far.
If you must get into debt, then buy assets that net a future return based on productive investments. If you were to buy real estate, you would have to buy it because you are expecting to receive enough rent to pay the mortgage back based on current rents.
If everyone gets into debt and uses it for speculation then we would probably get to see the opposite, an even stronger deflationary wave than what we have had so far.