In Why are Billionaires Buffett and Trump Bullish on Real Estate Right Now? part 1, we stated that the Federal Reserve is committed to stable, steady long-term inflation.
But what about all this talk of hyper-inflation?
There are some doom-and-gloomers out there heralding hyper-inflation. Hyper-inflation means you wake up in the morning and a pound of coffee is $5, but when you go back that afternoon, it’s $7 and by the following morning it’s $10. In other words, the dollar is in free fall and it takes more and more dollars to buy the same goods and services. It’s happened many times in other countries in just the last 50 years. It’s ugly, especially for those who don’t know how to see it coming, how to prepare and what to do when it happens.
Now we understand the argument for hyper-inflation and it’s a good one. So let’s take a look at why real estate right now makes so much sense.
I've spoken many times on my radio show about how fear is used to move us. Well, recently I spotted a great example. Just last week I wrote about how a mortgage “expert” was predicting a “
A growing number of real estate investors are using a self-directed IRA to finance their property purchases nowadays. That’s because a self-directed IRA can provide them with the opportunity to buy real estate and earn rental income without paying early distribution fees.
Optimism can only be rewarding if one takes action. Without it, it’s like driving a car that runs out of fuel; you’ll never arrive at your goal. Your past mistakes or apprehension about the future has nothing to do with what you can do today or what you should act upon. Decision-making may be risky but there are great results if it is coupled with a conscious effort to do what is right.
While homes prices continue to be on the decline, rent prices are actually on the rise and showed a 3 percent increase from January 2011 to January 2012, as opposed to home values, which dropped 4.6 percent during that same period, according to a recent Zillow Real Estate Market Report.
It used to be that home-ownership was a part of the American dream. Home-buyers would scour for properties that suit their needs whether it was for their growing family or for a second home. But the global economic slump that has plagued the real estate market has created a major shift on the housing landscape.
One of the most exciting things about being a real estate investor is knowing what markets will produce the greatest long-term returns – especially while in the middle of a challenging housing market.
Identifying your property’s value is crucial. As a real estate investor, you need to be aware of the three ways to determine the value of your real estate investments to guide you with your purchase, justify your selling price, or simply learn the basic market valuation techniques.![flags_globe[1]](https://www.noradarealestate.com/wp-content/uploads/2012/01/flags_globe1-250x250.jpg)
For many individuals, the single largest “investment” of their lives will usually be their home, as opposed to investing stock, bonds, mutual funds or certificates of deposits (CD’s). This is because purchasing real estate is less risky than investing in the stock market and can be more rewarding than changing CD interest rates.
