Everything Costs MORE...

Hey,

Inflation is soaring...but, in your lifetime, have you ever seen

deflation

? 

You won't find that ever without looking back to the great depression. Some may argue that 2008 was the "Great Recession"; however, they are misguided because the US Government actually added more money to the system

and

lowered rates...  

What does this mean to home ownership?

It means that as long as the US dollar is the world standard, things will continue to increase in price. Why?

A home is a bunch of things stuck together—lumber, copper, steel, oil products, concrete, etc.

A home is constructed by labor, and labor costs have gone up and will

continue

to go up.  

And because homes are made of many moving pieces, home prices will continue to go up as production costs go up.  

Buying a home is a long term investment.  In the short term, the price may decrease here or there, but because the price of things will go up over time, home prices will also increase. You can see this when comparing what your grandparents paid for their home versus what you need to pay.

This is WHY real estate is traditionally a hedge against inflation...

Housing costs is a major portion of the inflation report and homes are made up of things in the inflation calculation.

So, should you be sitting on cash or homes?  

I would argue your cash is worth less during inflationary periods however, if it were in real estate, it would go up.

If you are sitting on CASH, reach out, and let's find you a great deal in real estate and hedge against inflation.

Talk soon,

Suneet Agarwal

CEO of the Best Sac Homes Group

and Big Block Realty North

DRE01527343 DRE01730722

P.S Go search for homes on our website

here