In recent history, there have never been so many real chances to get rich. If you’ve always wanted to make money for yourself and your family, it’s time to start investing in real estate. The rich do keep getting wealthier, but not for the reasons you might think.
Rich people keep getting richer because they always put their money to work. When the market is weird, they don’t stop investing. They invest in different ways. Rich people have learned how to take advantage of both good and bad times. You can also do it.
Inflation is Here
Right now, there is a lot of inflation. Prices have gone up on food, clothes, gas, rent, and homes. The Federal Reserve is even telling people to expect prices to go up in the future. Still, some people are getting richer despite all the financial chaos. How are they able to do this? The answer is one you might know: Real Estate.
Real Estate Offers a Hedge Against Inflation
Savvy investors have always known that real estate is a good investment in any kind of market. There are two main types of real estate: real estate that goes up in value (appreciates) and real estate that brings in money (cash flowing). Most properties are very good at either one or the other, but they don’t have to be mutually exclusive. You can own real estate that both goes up in value and brings in money. You can also have a property that only goes up in value or only brings in money. But the thing to remember is that all real estate is a hedge against inflation because it either makes money or goes up in value, or both.
Real estate that goes up in value is a hedge against inflation because as the prices of similar land and property go up, so does the value of the land and property you own. This rise in price keeps your investment in a property that goes up in value safe.
Cash-flowing real estate is a good way to protect against inflation because it gives you a steady stream of income. If there is less of something during times of inflation, rents can go up, which means that rental income can go up even more.
Debt Interest is Still Reasonable
We are also in a time when it’s still affordable to take on debt for investing. Even though interest rates have risen since their historical lows, money is still reasonable to borrow for investing in real estate. But make no mistake, interest rates won’t be dropping anytime soon. Home values are already increasing, so you should be shopping for real estate to invest in right now.
Your path to wealth and earning passive income from real estate has never been more clear than it is right now.
At Norfolk Capital, we’re ready to help you build a new financial future for yourself and your loved ones. Contact us today to discover your options for real estate investing.