Jump to content
House Price Crash Forum
Fancypants

See What Hyper-inflation *can* Do To House Prices

Recommended Posts

http://www.news24.com/News24/Africa/Zimbab...1768958,00.html

my Zimbabwean friends tell me that, contrary to my own expectations, their hyperinflation has led to a similar (even accentuated) effect with house prices, as these are seen as more or less the only safe asset - the only place where you can park your money and it will retain its value.

This is obviously something of a self-fulfilling prophesy.

Share this post


Link to post
Share on other sites

I agree. If prices start going up it makes sense to borrow and watch your debt be eroded if you can afford the mega interest rates that will come with it in the short term. At the end of day everyone needs a roof over their heads.

Share this post


Link to post
Share on other sites

If inflation rises to over 1000%, I'd agree.

But I have a little more faith in the Bank of England; only a little mind!

Share this post


Link to post
Share on other sites

http://www.news24.com/News24/Africa/Zimbab...1768958,00.html

my Zimbabwean friends tell me that, contrary to my own expectations, their hyperinflation has led to a similar (even accentuated) effect with house prices, as these are seen as more or less the only safe asset - the only place where you can park your money and it will retain its value.

This is obviously something of a self-fulfilling prophesy.

Untill they bulldoze your house for voting for the wrong party...

Share this post


Link to post
Share on other sites

1 Zimbabwe Dollar = 0.00000002 Gold (oz.)

1 Gold (oz.) (XAU) = 66,649,845 Zimbabwe Dollar (ZWD)

For one to qualify for a mortgage for a three-roomed house in Tafara in Harare, which cost about Zim$250m (R64 580), one needed to be earning a net salary of at least Zim$15m.

With that salary, the building society would only give half of the total mortgage and the borrower would have to pay the remainder.

Houses in middle-income Harare areas such as Msasa Park, Westgate, Mabelreign, Hillside and Cranborne, now cost over Zim$1.5bn (R390 000), making it impossible for anyone with a net salary of less than Zim$90m (R23 200) to buy in these areas on mortgage.

So that makes 3.78 oz for a typical house, or 22.72 oz to live a nice neighbourhood.

I could buy both outright.

It would be terrible if a similar thing happened here.

And I do mean that because if it did the army would probably be

on the streets confiscating peoples gold, bastards.

:angry:

Share this post


Link to post
Share on other sites

If inflation rises to over 1000%, I'd agree.

But I have a little more faith in the Bank of England; only a little mind!

a house price rise of 1% per month looks quite enticing in that circumstance,wouldn't you agree???? :D:o

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.