The case for real estate during hyper inflation.

[Trent V.]

Real estate is a good investment during inflationary markets. I’m not wholly convinced it’s greatest investment though.

I think we are already seeing inflation hitting the real estate markets. Listening to the recent Joe Rogan podcast with peter Schiff it jogged my memory of one of the reasons real estate is a hedge on inflation.

When you buy a house it typically follows market trends of inflation. Which means that maybe the actual value of that house may not have increased much but the dollar value has. That means that you have dollars growing proportionally with the market. Say you only left the dollars in savings your purchasing power of those dollars has only degraded.

The other cool thing is that you have only agreed to pay your mortgage lender In dollars. Not dollars at inflation levels.

My question is. If we turn the corner and consider a world where the dollar has collapsed it’s going to be ugly. What happens to me with my one rental property. I think there is a chance I’m able to pay the property off early because I only agreed to pay for the house in dollars correct? Is there historical literature on this happening somewhere?

I’m probably just a chicken little but I think we are edging closer and closer to a real downturn here. It’s time for a correction and I look forward to being prepared for it.