Historically, real rents, for the last fifty years at least, have been stable. They have risen almost point by point with inflation. If you consider the nature of inflation and borrowing– as, inflation is good for the borrower and poor for the lender. Then, considering our current climate of high inflation and low mortgage rates, would you consider real estate a possible top investment opportunity? I say this because of rental incomes ability to move with inflation. A borrower’s gains from high inflation and low borrowing rates depends on the borrowers income. If income moves proportionally, the borrow gains. If income lags behind inflation, the borrow is not gaining (proportionally). So, Ddoes rental income rise with inflation? Yes it does. Thusly, giving a landlord/borrower more dollars to pay back a fixed payment. In today’s borrower/landlord case, considering that rents move with inflation, real estate investment and management seems a good play.
pitfalls of my analysis?
Comments (or compliments)?
p.s. Just read page 1 of book 1 of lvl 1 curriculum….