I know you are all relieved to know that Fed Reserve Chairman Bernanke is now going to set his sights on curbing inflation (sarcasm). However, in the unlikely event his efforts are not effective, here is an idea I think is worthy of noting. Have you ever heard of “if you can’t beat ‘em, join ‘em”? I am talking about a way to be in a position to help you offset or even benefit from the inflation we are beginning to experience.
My solution is investing in real estate. It’s what the millionaires and billionaires are doing. They are taking full advantage of the soft real estate market and low interest rates to build their real estate portfolios. Of course you are scared to jump in when the press is constantly pounding you with bad news. Here’s a little tip... bad news sells better than good news and the news media knows it, too! They take full advantage of the opportunity to exacerbate some of the real problems in our economy. But, I digress.
As inflation occurs with energy and fuel etc., the cost of construction materials also rises making re-sale real estate one of the beneficiaries. Buying existing properties in the current economic cycle will leverage against inflation and least give you gains in real estate even though you may be paying some of it back at the gas stations and grocery stores.
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7 Comments
We think it's a great time to invest and purchase property if you have cash or just good old fashion cash...lol
Bring cash partners...the banks are not lending very much, even with great credit or collateral....things have changed. It is very difficult with lenders today...
why ? cause this super inflation will kill a lot of good company, which means the existing employees will lost their jobs. If there's no job, the buying power will drop also, which means there'll be over product supply without any buyers. So, if there are no buyers the company will forced to lower their price (most of them are to cut their lost) & forced the supplier to lower their priced too or the business will die. in the end it'll be DEFLATION not Inflation.
there'll be 2 options in this condition :
1. a Total Chaos (this condition could born a brand new Hitler)
2. the new entrepreneur will born and save the day (maybe a brand new Donald Trump, Bill Gates, Thomas Edison or someone like that)
I don't tell you that Michael is wrong, I just recommend to spend carefully or you'll be sorry
Sincerely
William
Best Premises,
Martin Lindeskog - American in Spirit.
Gothenburg, Sweden.
Read the rest of the article at http://www.recessionproofmyhome.com/blog/client/index.cfm/190
Has inflation changed the prices of Trump Vegas units between construction presales and the present?
Will the second tower have both higher construction costs and higher sales prices, due to inflation?