You’ll hear that real estate is a good inflation hedge. Is that true? We dig into the data to answer that question once & for all

Inflation protection in the long run 0:23
Protection from short term inflation spikes 1:03
Protection over 10-year rolling period 1:51
Summary 2:20

Disclaimer: Nothing in this video is advice in any way, shape or form. I am not a licensed real estate professional. Therefore, everything in this video is meant only to be educational. You assume responsibility for your actions when using the information provided in this video. I strongly suggest you do your own research before making any investment in real estate or anything else. And always consult a licensed professional when you feel it is necessary. …(read more)

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Real estate investment is an important tool for protecting one’s assets against inflation. Inflation is a devastating economic phenomenon that can rapidly erode the purchasing power of an individual’s assets over time. Inflation is particularly harmful to those who have saved money, as the value of their investments will decline steadily over time if they do not take measures to protect their assets.

Real estate is one of the most popular ways to protect one’s assets from inflation. Unlike stocks and bonds, real estate is a tangible asset that can be seen and touched. This makes it a popular investment choice among investors who are looking for assets that can withstand inflationary pressures. The reasons why real estate investment makes a good inflation hedge are outlined below.

Firstly, real estate is one of the few investments that can provide investors with a steady stream of income. Unlike stocks and bonds, which pay dividends or interest, real estate generates rental income. This means that even during periods of high inflation, real estate investors can continue to earn rental income from their properties. Furthermore, many leases are tied to inflation rates, which means that rent can increase over time to keep up with inflation.

Secondly, real estate is a tangible asset that can appreciate in value over time. Unlike fiat currency, which can be devalued over time due to inflation, real estate can appreciate in value. Property values can rise over time, especially as inflation pushes up the price of goods and services. This means that real estate can provide investors with capital gains over time, which can help offset the effects of inflation.

Thirdly, real estate is a finite resource. There is only a fixed amount of land available for development, which means that the supply of real estate is limited. This scarcity can lead to increased demand for real estate, which can push up property values further. This makes real estate a coveted investment asset that can help protect against inflation.

Finally, real estate can be leveraged. This means that investors can borrow funds to buy investment properties, which can help them expand their portfolio and generate greater returns. When combined with inflation, leveraging can work to the advantage of real estate investors, as inflation can help reduce the real value of the debt owed over time.

In conclusion, real estate investment is an effective tool for protecting one’s assets against inflation. Real estate provides investors with a steady stream of income, appreciates in value over time, is a limited resource, and can be leveraged to generate greater returns. These factors make real estate a valuable asset class for investors looking to hedge against inflation.