If you have a mortgage with 2% interest and there is 8% inflation

why do people say you get 6% for free? This assumes your salary will increase, and all other prices will stay the same right?

I mean on paper I can understand it, but in reality its not just the case

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If you earn more because of inflation, yes, otherwise, no.

it's one of those nonsense arguments that make sense on paper but not in real life.

Jesus christ you people are retarded. Did any of you pay any attention at all during math class when they taught word problems?

thats why i said "on paper"

i'm paying 25% interest on my credit card and inflation is 35% so i'm actually saving money.

Low low interest fix loans are a way to short the $. The problem is is the loan truly fix, and then they can pass a law making it so banks can call those loans. The only thing stopping banks from calling loans is a law.

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You bring money from the future at a discount, simple as. Besides 2% is nothing, you should have taken a fixed rate loan long time ago. Imagine soon some basic saving accounts will have over 2% (probably riskier ones already have) so you would be able to make money with some money from the future

its just another tailwind in the total sum of factors. yes other things can outweigh it but id rather have more positive factors in my favor

You took the loan out because you bought a house. Then inflation hits. So your house is appreciating and your money has less and less purchasing power. Anyway you flip it, there is a profit in there for you just from having bought in the past. The take-away is physical goods hedge against inflation while debt always stays nominal and thus diminishes in real terms with inflation.

yes sure, i mean thats how boomers bought a house for 50k or something, the inflation was 15% and they got raises with 15-20% so over time they just paid it off

but then at least they got raises...

>So your house is appreciating

but the question is, will it appreciate as much when credit is 4x expensive?

They're retarded and it's debt slave cope.

assuming you don't want to be homeless, you have an asset you can live in cheaper than rent.

We're now seeing property values fall while commodities continue to rise. Eventually these 50 point increases will add up and commodities will stabilize. At that point the housing market will be back at 2019 levels. Your interest rate will still be low, but you're going to baghold on that 500k house which is only worth 300k in a sane market.

>If you have a mortgage with 2% interest
how do i get this i want it

i bought an apartment a few years ago with 10 year locked in

you have to be able to find riskless assets yielding above your mortgage rate

ibonds yield 9.62%
with a 3% mortgage the riskless return is 6.62% before tax

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Infect the world with a unknown virus that slows economic growth.

In theory yes, but people who say this don’t take into account that rising rates will negatively impact the price of the house

Housing market won't crash user.

It's a load of shit, to be honest, but mostly because you can't really access the equity in your primary residence. It's a house, you live in it, until you sell it you can't realize gains, and if you're just selling it to buy another house, then you're still not realizing those gains, you're just trading them for another asset that has also equally appreciated