How to use real estate as a hedge against inflation

[Augusta]

Inflation comes with the risk of devaluing the currency of the country and this makes saving money sometimes not a good idea especially during inflation. The value of the money you had saved will reduce drastically. The best bet for tackling inflation at all time is by investing in real estate like properties. Having properties is a better hedge against inflation. The below are the benefits you would derived

More money: When you have a property, as the price for the property goes up during inflation, you would be having high rental income too. So a property you were getting about $3000 yearly you might get more during inflation

Investment value; your property generally would have appreciated in value, so your investment in the property will be high now. This simply means your property value is higher now.

High standard of living: the standard of living would still be high as one with properties. The fact here is that an increase in cost of living means growth in cash for properties owners. So you would having a better cash flow from your property

So the truth is that it better to have properties during the time of inflation. Do you agree with this?

 

[kayode10]

Instead of keeping money in the bank it is better to invest in Real estate. The reason is that real estate has hedge over inflation in any economy. as the population of a country increases so the need for more housing. This is the reason why real estate will continue to rise in value and be a good money making model in any country. Real estate owners are one of the richest people in any economy.

 

[sincerem]

I understand that the best bet to tackle inflation drastically is real estate. But the real question is that, not everyone have the capital to invest in real estate. It is capital extensive, anyone going into it, simply have reasonable funds to invest in real estate investment. One who isn't financial stable wouldn't find a route to invest in real estate, it is better to invest elsewhere like cryptocurrency, and save up gradually and come back to invest in real estate.

 

[General01]

That's the plain truth. The only elixir to inflation is never and will never be saving money.
The best way out is by investment just like you have rightly said, real estate investment is one of the low risk and most rewarding investment that existed from time immemorial.
I is definitely a way out of inflation

 

[Alexandoy]

I am still awaiting for the big money to arrive by January. My plan is to invest a big part of that money to real estate particularly in a townhouse. There is a developer that will build a townhouse compound just a stone's throw away from our home. Isn't that nice that my investment would be near me physically? Now the crux is my liquidity that is why I am making further computations regarding the amount that I will pay for a unit of townhouse vis-a-vis the amount that will be left to my bank account for my sustenance in the coming year. To be frank, my projection is 5 years of total household expenses should be in my ATM account so that there will be "cash on hand" that I can use when I need. It is not easy to dispose of a real estate investment. I had experienced that so there should be a balance of funds between the investment and the liquidity.

What's good in real estate investment is the continuing appreciation of the price in the market. When the pandemic started the real estate industry was affected but only for 3 to 4 months. It was like a jolt but it recovered easily. And now the real estate is booming once again with the prices of property getting higher every day.

 

[Setho]

The real estate industry if you are going to invest in it is definitely one of the market that you can be able to beat inflation from. There is a popular saying that investment in real estate is one of the most productive because it is always in demand . This means that if you are going to buy a property for let us say one thousand dollars right now, there is still.a tendency that you can be able to sell it for up to $20000 if you are going to keep it for the next five years and that is just how it is.