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Updated over 4 years ago on . Most recent reply

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Karl Mikusek
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4
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Inflation and real estate debt

Karl Mikusek
Posted

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!

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