Re: Housing and Inflation

On Sat, 23 Jul 2005 22:35:59 -0700, tomdelorey wrote:

> FWIW, my grandfather moved to Detroit in 1928 to work on the Ambassador
> Bridge, and bought a decent house for about $5000. By 1931 it was only
> worth about $3000, and they still owed a lot more on it than that, so
> they walked away from their equity and bought a comparable house across
> the street for about $3000. By 1933 its value was down to about $2000,
> so they walked away from that equity and bought a third house down the
> street for about $2000.
>
> Housing can go down in value, period. It may or may not go down, but it
> most definitely can.
>
> MOO
> Tom DeLorey

A) I said my lifetime (42 yrs.old). I should have mentioned something like
the single greatest global financial crisis could have lowered property
value somewhat.

B) I think you actually illustrate my point better though. If it was 1928
everyone would have been telling me to buy stock. And I would have bought
a house. My house would have dropped 50% lets say during the great
economic depression and stock market crash. How would my stocks have done
though?

C) You quote a very short term flux. I said 40 years. That 1928 5,000$
house was worth what in... 1968? ANY investment vehicle if you seperate
the two most seperated points and cite that would loose money.

D) And again. All the houses were still worth something. If we had that
magnitude of a crisis RIGHT NOW, how much would that 99s silver proof set
be worth?
-
dw

.

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