Hedging inflation with real estate
Peter buys a house for $100.
10time passes and Peter sells his home for $200.
2time later he decides he wants to buy the same house back but now the house costs $210.
However Peter has only $160 after paying $40 capital gain taxes.
He lost $50 buying power, and therefore is poorer.
Peter was hedging inflation with real estate.
First Created: 2021-10-26
Last Modified: 2026-04-05 19:35