Is Real Estate a much superior inflation hedge compared to gold?

Maverick74 said:
It's not an issue of affordability, it's an issue of credit. You can be poor in this country but you do have to pay your bills. I have friends that have gone through 2 bankruptcies and barely making a living wage and they are homeowners. There is usually "more" to the story then just not winning the "pick 6". But that is a topic for another thread I suppose.
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Yes. Another topic. There are guys who own their own homes on low levels of income. There are guys who don't. Some are derelicts and some are not. It's not black and white. But the market prices rents according to the supply and demand. The down payment is a huge hurdle for a lot of people in my factory.
 
Maverick74 said:
Very high. They run about 2.5% to 2.8% in the burbs. Almost impossible to cashflow a home in the burbs. In the city the taxes are less.
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That is crazy, I mean I guess it is to compensate for no income tax, but that is definitely high. I think we run around 1% where I live, but we don't have an income tax either. That counts the city and county I believe. My house appraised about 250k and total tax bill is like $2400 roughly. But they use a weird formula to calculate it. I can't remember the details but it is around 3.17% of the final number after their formula. To be fair we have a somewhat higher sales tax rate though I guess to compensate, 9.25%
 
FCXoptions said:
That is crazy, I mean I guess it is to compensate for no income tax, but that is definitely high. I think we run around 1% where I live, but we don't have an income tax either. That counts the city and county I believe. My house appraised about 250k and total tax bill is like $2400 roughly. But they use a weird formula to calculate it. I can't remember the details but it is around 3.17% of the final number after their formula. To be fair we have a somewhat higher sales tax rate though I guess to compensate, 9.25%
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Yes, the key word is "assessed value". They have a formula for determining that. But keep in mind, look at the actual dollar amounts. Historically TX homes have been dirt cheap, especially compared to the coasts. So paying 2.5% on a 250k home in Houston vs paying 1.2% on that exact same home in the Chicago burbs which is priced at 500k is about the same. Now to be fair, homes in TX have gone up a lot in value and there has been little property tax relief. TX does have a homestead exemption that can cut your tax bill by 25% in you live in the property vs an investment property and there is some relief for seniors.
 
Milton, Von Mises, Bohm Von bawerk, or Hayak, or any other economist. All of which i have read. I would have any respect for will tell you exactly what happens with respect to an ever expanding monetary controls.. Mav has it right on the money...

I'm very happy to see people quoting Von Mises.. I think this guy had the clearest view. We as a people have lost the belief in a free market.. Price discovery is lost and distorted.. Any one of these guys will tell you who caused the great depression!
https://mises.org/library/great-depression

please read!

Inflation is the hidden tax! the lower down the food chain you are the slower your rate of income increases relative to the rate of inflation on your purchases.. Monetary controls are a way of extracting value out of people.
 
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