Thursday, May 8, 2008

Inflation Is The Toughest Thief To Battle

I heard a great one today. "Inflation is the toughest thief to battle." It is virtually unstoppable. It creeps up on you and takes from you.

So what can you do? Well, of course you know my answer. Invest in investment grade real estate. Not houses to flip. But houses to hold and rent. Or apartments. Or offices. Let others pay your bills for you. Let others pay your mortgage for you.

Owning real estate is a hedge against inflation. It won't stop it. But in fact, you'll be carried along by it. Values for property over time go up. Rents go up. We are seeing it now in multifamily and distressed single family homes. Both of which are being snapped up by experienced investors. Because people can't afford to buy, or keep their home, they are being forced to rent. Which puts pressure on rental residential properties -- whether a single house, or a twin-single, or four-family, or large apartment complex.

Something to think about.

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