00:01
So here we're given a bunch of statements about house prices, and we have to figure out which is true.
00:06
The answer is a, have increased.
00:10
This is absolutely true, and this is often a perk of real assets, are a natural hedge.
00:20
When you own real assets, you expect them to go up in tandem with inflation, right? inflation is the devaluation of dollars.
00:27
But when you own a house, you don't own any dollars, you own a house.
00:31
There's no reason to think that inflation would debalue your house.
00:34
Inflation would probably should increase the price of houses and food and everything else at the same rate.
00:39
It's only that if you're holding stuff in dollars, right, that you're exposed directly to the effects of inflation, not dollars.
00:49
So yes, home prices have increased.
00:51
This is just an empirical fact.
00:52
You need to know that from the data.
00:54
And yes, that real assets like houses act as natural hedges against inflation because they are not piles of cash, right? they are physical assets.
01:04
So inflation will increase the price of houses just like everything else.
01:07
So a house is some insurance against inflation, right? v has increased by less than cpi.
01:20
Again, i don't know what country you're in here, but the first one is clearly the correct one.
01:26
True, false for most countries, right? if you're in any sort of developed country, this is just false...