Quote:
Originally Posted by sekin67835
Say the world economy collapses and you lose whatever business you do. The economy isn't going to fix itself anytime soon, and all you have is money. Hyper inflation kicks in and now you can't even pay rent. What are you goIng to do? For me, a house is not only just an asset, but a place I can truly call home. If shit goes down at least I still have a shelter to protect me. If you have extra money, why not buy an apartment or a house? You can rent the basement to cover any yearly expense or rent out a room to cover strata fees. Or if your baller, you can rent out that house and rent another place. Sure you may lose opportunity cost for investing into the house, but you forget that the population is growing and land doesn't get any bigger. With well known beautiful place like Vancouver, we saw a property boom. Most locals can't afford the west side. Say you were renting the west side 5 years ago, you had the money to buy the place but you thought it was too "expensive". Now the price doubles and what are you going to do? Rent for a very long time unless you relocate. And then there comes the family factor. I'm not sure of you're married, but when you do and have kids, you may want to buy a house for security and ease of mind. One less payment to something means less money spent. Plus, rarely will the asset depreciate so fast that it is worthless.
Just my thoughts. ( Chinese mentality)
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I'm too lazy to write a long winded post right now...
Hyperinflation wouldn't happen overnight, since my assets are completely liquid I would convert them to the appropriate currencies, metals etc. (likely assets that would appreciate during the downturn) and move to a “cheap” foreign country where I would be getting high and banging prostitutes on a beach.
Eventually things would get better and I would move back to Canada and attend Detox/AA.
(Caucasian mentality)
Meanwhile… you would be stressing out, watching your net worth evaporate, living in what would eventually become a dump due to local economic conditions, and would probably end up bankrupt due to your unemployment and not being able to sell your house for what you owe.