Another great insight from Robert Kiyosaki (link below):
„WHAT HAPPENS TO REAL ESTATE WHEN THE DOLLAR DIES?
People keep asking me:
“Robert, what happens to real estate if the dollar collapses?”
The answer is simple:
Real estate doesn’t crash when a currency dies.
The currency crashes INTO real estate.
Let me show you what I mean.
CURRENCIES DIE. LAND DOESN’T.
When a currency collapses, people don’t stop needing:
- A place to live
- A place to work
- A place to store goods
- Land to grow food
What changes is how many units of the dying currency it takes to buy those things.
- The building doesn’t disappear.
- The land doesn’t disappear.
- The need doesn’t disappear.
What disappears is the purchasing power of the paper used to measure it.
That’s the key idea most people miss.
WHAT HAPPENED IN WEIMAR GERMANY WHEN THE CURRENCY COLLAPSED…
In the early 1920s, Germany’s currency (the Papiermark) went into full hyperinflation. By late 1923, prices were doubling every few days.
People who held cash were wiped out.
People who held hard assets — land, factories, real estate — survived or even came out far ahead.
One industrialist, Hugo Stinnes, borrowed heavily in Papiermarks and used the money to buy hard assets: coal mines, factories, shipping, land.
As the currency collapsed, his debts became worthless in real terms while his assets rose in value relative to the collapsing mark.
The lesson historians draw is simple:
“Durable, real assets don’t lose value the way paper money does during hyperinflation.”
Real estate didn’t “go to zero.”
The currency went to zero against real estate.
THE SAME THING HAPPENED IN ZIMBABWE…
Zimbabwe has battled repeated episodes of extreme inflation and currency collapse.
What happened?
Confidence in the local currency vanished.
People started pricing real estate in U.S. dollars instead of local money. Most serious property transactions are now done in dollars because nobody trusts the domestic currency.
At the same time, property — especially in major cities — became a store of value for those who could afford it.
In many cases, real estate prices surged in local-currency terms as people tried to escape the dying money.
Again:
The houses didn’t die.
The currency did.
AND HERE’S WHAT HAPPENED IN ARGENTINA…
Argentina has lived with high inflation for decades. In 2023, official inflation passed 200%.
What did people do?
They started pricing and trading real estate in U.S. dollars. In Buenos Aires and other cities, property listings are often quoted in dollars to escape the chaos of the peso.
Nominal prices in pesos can look crazy. But the underlying reality is this:
- The peso keeps collapsing
- The apartment is still there
- The dollar price of decent property is far more stable than the local currency
Once again, the same pattern:
Currency unstable, real estate persistent.
SO WHAT DOES THIS MEAN FOR THE DOLLAR AND YOUR REAL ESTATE?
I’m not saying nothing bad can ever happen to property.
Governments can:
- Raise taxes
- Change regulations
- Attack landlords
- Destroy financing markets
And if you buy wrong — bad location, bad debt, no cash flow — real estate can hurt you in any environment.
But history is very clear on one thing:
“When paper money dies, real things don’t disappear.
They just get re-priced in more and more units of that dying paper.”
That’s why, in every serious currency crisis, people run out of cash and into assets:
✅Land
✅Buildings
✅Farmland
✅Productive businesses
✅Commodities
The question isn’t, “Will real estate survive if the dollar weakens?”
The better questions are:
- What kind of real estate?
- In what markets?
- With what kind of debt?
- With what kind of cash flow?
Because when a currency declines:
- Cash melts
- Savings erode
- Fixed-rate debt shrinks in real terms
Useful, well-located real estate tends to hold value relative to real goods and stronger currencies
❌You don’t protect yourself from a weak currency by clinging to the currency.
✅You protect yourself by owning things the currency is measured against.
So when people ask me:
“Robert, what happens to real estate when the dollar dies?”
My answer is:
The same thing that’s happened every time a currency has died.
- Paper burns.
- Land remains.
The smart move isn’t to fear that reality.
It’s to understand it, prepare for it, and position yourself on the side of real assets — not just paper promises.“
FB link:
Robert Kiyosaki
WHAT HAPPENS TO REAL ESTATE WHEN THE DOLLAR DIES?
People keep asking me:
“Robert, what happens to real estate if the dollar collapses? ...
