Updated about 5 years ago on . Most recent reply
Inflation and real estate debt
Hi all,
I am no economist and am looking for some insight from people on this topic. if we exclude any type of forced appreciation -
If inflation hovers around 2%, the value of a property would be growing this same 2%, along with this the debt would be technically worth less as well because the value of a dollar is technically worth less as well. In a high inflation time line it would be best to hold as much debt that allows correct?
Correct me if i am out to lunch but another example would be - a 3% inflation rate and a 3% mortgage rate would essentially cancel each other out.
Appreciate your insights on this!