OK, I'm going to stop before I start confusing myself with scenarios, but if you want more information on how hedging against inflation with rental properties works, check out «Real
Estate as a Hedge Against Inflation.»
As countries around the world continue to print money to spur economic growth, it is important to recognize the benefits of owning income producing real
estate as a hedge against inflation.
Not exact matches
The reason real
estate is a
hedge against inflation is that real
estate values generally rise
as the dollar falls.
Many large
estates were bought not to produce food but simply
as a
hedge against inflation, which hovered at around 1000 per cent until mid-1994.
I like to include real
estate as one of my
hedges against inflation.
investing in something along the lines of 20 % TIPS bonds, 25 % S&P / broad market, 20 % in a small cap / russell 2000 fund, 15 % in real
estate and 10 % in a corporate bond fund: 1) will prove to be just
as stable and
as much of an
inflation hedge against the «Permanent Portfolio» and 2) will provide much more steady returns than his proposed portfolio
either using a balanced real
estate index fund (i know, but keep reading) will, over the long - haul, provide steady dividends
as well
as a
hedge against inflation;
as the $ rises, so to will the underlying property value.
In fact institutional investors, such
as leading endowments and foundations, have long used investments in real assets such
as real
estate, commodities, timber and energy
as both a
hedge against inflation and
as a core diversifier.»
Investing in commercial real
estate in general and seniors housing in particular has the potential to act
as a natural
hedge against inflation, because property owners can potentially benefit from increasing rents and property values.
Investors get into Real
Estate for Appreciation, Equity, Cash Flow, Leverage, and for a
hedge against inflation and
as it turns out Whole Life Insurance policies have the same advantages and con be used in conjunction with Real
Estate Investing.
Those economic data should bode well for commercial real
estate, which is often viewed
as a
hedge against inflation due to the fact that leases include escalation clauses that often mimic changes in the Consumer Price Index.
If however lending increases, propping up the real
estate prices, QA3 will act
as a
hedge against hyper
inflation which many predict will happen within next few years.
Real
estate still offers predictable cash flows, tax benefits and a
hedge against inflation, and thus remains highly appealing; most HNW's and family offices are targeting
as much
as 10 to 15 percent of their investment portfolio to real
estate.