Personal Investment & Financial Planning Q`s/impact of inflation on housing

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Question
In times of high inflation, if someone is looking for a place to live, would it be better to spend $200,000 buying a place with cash outright, or put the $200,000 in an interest bearing account, and rent?

Answer
Hi Joe,

This question is difficult to answer with any conviction since the future price of real estate is very dependent on the area you are considering as well as other factors. In addition, the amount of rent you pay as well as whether or not you then intend to purchase a home later on (and if so, when). Generally speaking, stocks are your best performers during times of high inflation, and real estate, has also been a good performer. Although, as we all know, the dynamics of real estate have changed. Sorry I could not offer more specific assistance.

John

Personal Investment & Financial Planning Q`s

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John D Smith, CFP

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I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related comprehensive wealth management and investment concerns.

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I have a degree in Financial Planning & Counseling and I am also a Certified Financial Planner practitioner.

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