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New Jersey Real Estate Holds Value Better Than US Dollar
By admin | December 18, 2008
With the federal reserve banks of the world doing everything they can to re-inflate the world economies, they risk major consequences. If they fail to stabilize the economies of there countries then governments such as the U.S. government will be forced to default on treasuries which will make the U.S. dollar worthless. That means if things go to hell the way some of the dooms Sayers proclaim it is an exceptionally bad idea to hold your savings in cash because it will be worthless. Now if the federal reserve banks succeed and pull us out of the bad recession we have ended up in, we will see high levels of inflation decreasing the real value of the dollar. So, we are sitting in a very rare situation where both the upside and the downside say to make the same play. The best move going forward is to be aggressive in purchasing and owning real assets. Examples being: New Jersey real estate, commodities, companies holding ownership to real estate or rights to commodities.
This blog post was written by and inspired by a commenter on one of my other blogs.
I totally agree and have been thinking this way for a while now. The way the government is bailing the banks out, and printing money like crazy the only result we can get is a high rate of inflation. A high rate of inflation will see things like home rents going up 8% to 10% a year or more, and food clothing and most everything else going up at those kinds of rates as well. With as much production capacity that is being taken out of the auto industry you will see autos in short supply as well and going up at the rate of inflation as well.
So what is the smart move for capital preservation or even growth going forward? If you are reading this, you are likely a resident of New Jersey, so first thing you should do is make sure you own your own home. Personally I would make sure you have as much of a mortgage on it as you can. Why do I say that? If you can get a New Jersey home mortgage below 5% and over time inflation is 8% or higher, you will be paying that mortgage off with ever cheaper money and your home likly will be going up in value at or near the rate of inflation.
So Buy a New Jersey Home
Buy Morristown NJ Real Estate
Prices are down now, Interest rates are down now, but they will not be in the future.
James Boyer
Morristown NJ REALTOR
RE/MAX Properties Unlimited
973-539-6300 Office
973-647-0253 Direct
New Jersey Property Listing Site Map
Category: Morristown |
One Response to “New Jersey Real Estate Holds Value Better Than US Dollar”
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December 21st, 2008 at 10:29 pm
I guess it would be a good thing for us to look into buying a home now that we know we will be living in New Jersey for the forseable future.