The “REI” Secret to Beating Inflation

      

Lawrence Yun was recently quoted as saying, "If you are under the age of 40, you have never seen inflation this high in this country."

The inflation rate in November hit a record 6.8%. That's the highest we've seen in decades.

So when we look at these numbers and everybody's talking about inflation, how does this relate to estate?

It's an interesting conversation. It's something that we should talk about with our clients.

Here's the good news when it comes to real estate:

Real estate is a tremendous asset and a hedge against inflation. That's why last year, we saw a record number of people investing in real estate. In fact, it was the the highest recorded ever. The percentage of homes purchased was 18.2% were sold to investors.

One reason is they're using it as a hedge against inflation.

So here's what's happened according to Lawrence Yun. He says that real estate has proven to be a good hedge against inflation. Some examples:

In the 1970s,...

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The “Delta Opportunity” for Investment Property Right Now

        

If you know people in your sphere of influence that own investment property, I've got some good news. Also, if you own an investment property, I've got good news. And if you're trying to sell investment property, I've got good news:

The investment property side of our business is going through a real resurgence right now. We knew during COVID they got kinda hit. We know the eviction moratoriums made it really tough for them. But now we're starting to see people come back out of that.

So here's a few good numbers in that arena that come from us from the NAR economist blog:

Two of them are dealing with absorption rates. Absorption rates, meaning how many units are being absorbed by the market.

In Q2 and Q3 of this year, 700,000 units were absorbed by this market. It's a lot of units, but completely instantly absorbed by the market.

Vacancy rates have fallen in 2011-ish from 6.9 back then all the way down to 4.6 now. That's a nationwide...

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How to Leverage Rapidly Rising Inflation to Become Filthy, Stinkin’ Rich

        

Hey guys, a recent report shows that inflation is rising rapidly. It's the highest it's been in 13 years — up to 5.4% right now. When we look at that number, we should look at it from the perspective of: How does that impact us as REALTORS and our clients?

As REALTORS, the one thing we should be concerned with is if we took $100k and we put it in the bank and waited a year, based on this inflation rate, then at the end of the year, our $100k would only buy $94,400 in goods. So that's not a good thing. We need to make sure that we're investing in assets that are rising faster than inflation.

And we need to encourage our clients to do the same thing.

One of the best hedges against inflation is real estate. Which is good news for us.

We need to be talking about this with all of our clients that real estate is one of the best hedges against an inflationary market.

One of those reasons for that is that we can look at appreciation...

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