The Hidden Benefits Of Real Estate When Inflation Is High!

so real estate is actually one of the best investments that you can have when we're in a high inflation environment it's really for two reasons one homes almost always appreciate greater than inflation historically we see headlines like home values have increased by 10 percent but that same year we have seven percent inflation we need to understand is that seven percent of that ten percent is purely inflation the US dollar loses its value so you need more dollars in order to purchase the same asset so homes almost always appreciate greater than inflation the second way that you benefit with inflation is that your debt effectively gets reduced by the rate of inflation so if you have a five hundred thousand dollar loan we have seven percent inflation the value of that 500 000 debt you have effectively got reduced by seven percent so with high inflation your home's value increases while at the same time your debt effectively gets reduced and it's a win-win

Channel: Malcolm Lawson - REALTOR

Views: 652

Keywords: Malcolm Lawson, inflation, real estate, real estate investing, real estate inflation, investing with inflation

Id: YfkX5gPDtZ0

Length: 1min 0sec (60 seconds)

Published: Thu May 18 2023