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Ignore meetyaks
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In United States
Registered Feb 22, 2012

meetyaks's most recent comments:

• On 20 Mar 2013 in Will prices go down in SF Bay Area?, meetyaks said:

  myob says
  

  Inflation doesn't work that way. Generally, incomes trail inflation, so over time, your purchasing power drops.

  Say you have $10k today and a loaf of bread costs $1, but in 20 years, you have $1M, but a loaf of bread costs $500. Are you better off?

  Don't confuse nominal values with real values.

  I've lived through inflation in another country, and it makes people a whole lot poorer, whether they're renters or owners. The one set of people who do well are the guys in control of the money creation, since they have first access to it. To remind myself of this fact, I have a little envelope with $100,000,000,000,000,000 Zimbabwe dollars. They tried to print their way out of trouble too.

  Are you saying its better to buy some tangible asset (like house) to guard against inflation?

• On 19 Mar 2013 in Will prices go down in SF Bay Area?, meetyaks said:

  chanakya4773 says
  

  meetyaks :Think of a house like signing a 30 year rental lease.

  suppose you are buying a house and have to pay $3000/month mortgage ( after property taxes, tax benefits..etc) for it. would you rent the same house for $3000/month if the rent is guaranteed to not change for 30 years ?

  benefits : Rent remains fixed ( assuming the rent is reasonable)

  Cons : house deteriorates over time. Cannot move if housing market goes down.

  during the last housing bubble, people were signing up for 30 year rental leases ( per my house buying analogy) at rents that were double of what they would normally pay.

  I can bring down the rent to 3k (ie mortgage) if I shell out all my savings to get a decent home with good schools. Not sure what to do.

• On 19 Mar 2013 in Will prices go down in SF Bay Area?, meetyaks said:

  New Renter says
  

  Cons : house deteriorates over time. Cannot move if housing market goes down.

  But aren't prices supposed to go up over the years due to inflation?