No one buys a house by saving enough money to buy, including the down payment, it is possible to borrow a little, because you borrowed someone else's money, then at this time it is someone else, it is the bank that helps you carry this inflation, it is they who pay for you, today we will talk about buying a house
If inflation comes, then a loan to buy a house is the most cost-effective, if I buy a house and pay 200,000, a loan of 800,000, and then you pay back the money to the bank every year, you must know that you are still in the principal at this time, in fact, you have not repaid the interest, who repaid the interest of the bank for you, you must not think that inflation is to pay you back, inflation is just a statistic, in fact, the depositor pays for the lender, why is the depositor's money less and less valuable? Because there is inflation, you can go to the bank and see.
It's the elderly who save money, and the young people who take out loans? If no one goes to the bank to take a loan, then the old man keeps his money in the bank, which is equivalent to saving it in vain, and the old man saves money and the young man borrows, which is just balanced, so the United States makes the people of the world pay for him by issuing bonds, and the people of the world are saving money, and he borrows and spends all the money we have saved? Do you say that this is the case, any money we borrow from the bank today, you can only borrow money if someone saves money, and if no one saves money, what do you borrow? They keep their money in the bank,
If there is inflation, they lose a lot? Is this point where the interest rate is simply worth the inflation rate? With any country, you see, if the inflation rate is three, it gives the bank interest rate to four at most, if so, the inflation rate is four, the bank interest rate is three, if the bank interest rate is negative, then we deposit money in the bank, the bank will not give me interest at all, someone thinks of a way to make money,
If you want to take money from one country to another and make money at this rate, you have to look at what the inflation rate and interest rate are in that country, and if Japan has zero interest rates. We took a loan from Japan, and the money we lent was deposited in Russia, and they gave a deposit interest rate of 19%, which theoretically made money, but in fact, you have to look at what the inflation rate in Russia is. If the inflation rate in Russia is 21,
I borrowed money from Japan at a low interest rate and exchanged it for Russian rubles, which is 19% given by Russia, but when it is time to pay it back, inflation is already 21%, is it minus two? Do you understand? So everyone remembers two rates, one is the interest rate, and the other is the inflation rate.