Originally Posted by
Logen Ninefingers
I guess what’s best for society is one aspect, but when inflation shows up its the purchasing power of all our money that goes down the tubes, so there is certainly self interest there as well. When will general price inflation kick in? Again, some say that because it hasn’t happened yet it won’t happen. If it does we will have big problems, with house prices having far outstripped wages and salaries.
The idea that there are a whole bunch of savy people out there that can time the housing market and will be able to get out has already proven to be a fallacy I would say. Take this COVID crisis for example: all those people that overpaid needed saving. Huge fears the property market would crash, kitchen sink thrown into saving it, market responds by taking all that stimulus and rocketing higher. So it’s an attempted bail-out that’s gone pear-shaped.
In a bad market, houses are highly illiquid. I can list shares and sell them in a minute. That’s a liquid investment. You can’t do that with a house. So a nice quick escape during a crash wouldn’t be possible I’m afraid.