I am currently sitting on 10% gold and 90% cash, and the thoughts of coming inflation make me very nervous.
Since I don't want to invest into stocks more than 40%, I am trying to figure out if an investment in RE as a primary residence (I am renting now) makes sense.
As I understand it, during inflation RE prices go up (as everything else), but at the same time, inflation causes mortgage rates to rise also, which makes RE prices to go down.
So my questions are
1. what would have a bigger impact on RE price - rising interest rates or rising inflation?
2. what makes more sense - to buy now with 20% down, and lock in at a very low interest rate, or wait until inflation hits, mortgage rates rise, RE prices drop and buy cheaper for cash or with a large (50%-100%) down payment.
I live in So. Cal, and to be realistic, assume to keep the property for about 10 years.
Any opinion would be greatly appreciated.