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by frockington1 2045 days ago
If the government shuts down the economy again its very likely. Thankfully the government is also printing money so real asset prices will only rise. Will be able to make up for lost rent quickly as prices rise
2 comments

> Thankfully the government is also printing money so real asset prices will only rise. Will be able to make up for lost rent quickly as prices rise

Could you elaborate on this? I don’t follow

Real asset prices have had a historic run this year. As the government goes into further debt, the relative value of the dollar decreases resulting in an increase price for housing, equities, precious metals and even bitcoin
"more dollars chasing fewer goods" is the classic expression. Its obviously highly simplified.
Landlords will have increased equity in their buildings which will offset any rent arrears so will continue to enjoy the government supported risk-free rental income as they always have

Tenants will likely be shafted

Increased equity doesn't pay the mortgage. So they have to sell to realize that 'increase' to offset their rent losses. Everybody sells - prices go down - landlords lose out as well.

Nobody is winning here.

Who will be able to make up for lost rent? I don't think it will be tenants.
The landlords. As long as the government keeps devaluing the dollar, landlords should be safe and the housing supply shouldn't shrink too much. If rates rise, we may end up with a lot of empty buildings