The pandemic has brought on a rise in inflation, the likes of which we have not seen for the past 30 years. The effects of inflation can be felt in virtually every facet of daily life, from food, fuel and transportation, to energy and shelter. Prices are skyrocketing and Americans are struggling to keep up as income typically doesn’t keep in step with the demands.
There are several ways that individuals can take a proactive stance to protect themselves against rising inflation. Things like investments and furthering education to increase earning potential can help, but investing in real estate may be one of the most reliable protective actions to take.
Real estate investments, such as rental properties, often do stay in step with inflation as rental prices rise and fall based on the economy and market values. While property values rise and fall with inflation, mortgages remain fixed.
In our current economy, owning a rental property could provide financial stability and a positive cash flow, especially as the demand for shelter is quite a bit higher than the availability. The pandemic has caused a serious supply chain breakdown, which means that building materials are more expensive and not as readily available.
Owning rental properties in a seller’s market could be the key to weathering the inflation storm in the uncertainty of the future amid our third year of the COVID pandemic.