answers for pennyo, page-2

Great to see a good debate going on here. Lets take a look at the actual post..

"lets say your house is worth $450,000 and you sold it, you would get a promise for $450,000 of value which you can spend as you like.


lets say inflation jumps above housing growth for a few years and wages tripple. and your house prices go up by 50%

you might get $675K for your house now, but the value of money has droped by 2/3 which means what you get in return for your money buys you 1/3 of what it did previously..

this means the value of your house has droped by half.

I'm guessing you property bulls are scratching your head because you dont understand how your house is worth less if your getting $200K more for it?"

Now read it again. And again. Get it now? What if I said, based on this example, that your break even point would be $1'350'000. The true cost of something takes into account much more than the sticker price.