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How to Hedge Against Inflation

April 8, 2022 | Buying

Hedging against inflation.

While we don’t have all the answers on how inflation will affect our economy on the macro level.  We do have thoughts on how to help hedge against inflation in the micro level.

 

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As far as we’re concerned, rising inflation makes sitting on cash a losing proposition

While the cost of everyday items like groceries, gas, entertainment etc. increase daily lately – what do you think happens with hard earned money you’ve been squirrelling away in your savings account?

( Hint: 🐿 +💰 = -$)

It becomes less and less valuable. That’s what.

The $10,000 you may have in your account today is actually worth less and less each day that passes thanks to inflation 💸

Banks do offer interest on the money, yes, however it’s nominal.

So what do you do?

Invest in anything that offers you a higher return than you would otherwise be receiving at the bank.

Obviously as real estate consultants, we’ll suggest real estate.

(But beyond that there’s stocks, mutual funds, ETF’s and even Crypto currency that may make perfect sense as well!)

So let us stick to our forte.

We believe in real estate as it’s the safest most conservative approach to investing over the long term.

Buy a house as an investment with your savings, rent it short term or long term and have it pay for itself.

(Ah hem. Hedge against inflation!)

Watch your investments grow, you’ll thank us very soon we promise. Simple.

However what if you have some savings but not quite enough?

💥 Try PRE-CONSTRUCTION 💥

The extended deposit structure most Pre-Construction projects offer are like the VIP SUPER EXCELLENT INCREDIBLE savings plan your bank doesn’t want to tell you about.

Usually you deposit $5-$10k at the signing of a project and 5% in various intervals stretched out over a 3-5 year time frame to eventually get to 20%.

When the project is built you’re more than likely going to have made money on appreciation alone over time.

(Remember you don’t day trade real estate. It’s a long term game.)

Then factor in mortgage pay down from leasing it out and building equity amongst other benefits.

🌟 A winning proposition 🌟

That’s more what of what everyone wants to hear.

Especially when it comes to how to hedge against inflation.