I was reading an article from a person who gives personal financial advice.

One person asked the so-called expert what is a good hedge against inflation? (The reason I say so-called is because the commentator gives generic advices that is easy to sell and easy for people to understand without have to gain further details and insight.) The “advisor” said real estate – paid with cash. But then again, you have to understand the expert is a person who has been, if not still is, a realtor.

I wouldn’t necessarily agree that a house is a good hedge against inflation. As I’ve stated before in “How to hedge against inflation“, I think increasing your income is the way to hedge against inflation.

Then another person asked about real estate. The same “advisor” said this is a good time to borrow.

So which is it, pay cash or borrow? I would expect this “flip flop” action coming from Washington.

Now in defense of the “advisor”, not everyone can pay cash and maybe the last comment from the person in the audience cannot afford to pay cash. And yes, I would agree, it is a very good time to borrow, and probably a good time to buy a house as well.

But if you could pay cash, would you? Really?

Factors that should be considered include, real estate, mortgages, investments, inflation, time value of money, etc. All of the aforementioned topics are not complicated, but may require a little more time than the popcorn in the microwave to learn.

Therefore, don’t get suckered in to the hype about real estate from a realtor, or the easy advice of paying cash by a debt free pundit. The information may be given because it’s an easy sell, and not real education.

Check out Chapter 3 – It’s All Hype.