A Concept to Challenge Your Status Quo
It seems everywhere you turn you can hear sighs of disbelief about what groceries cost. the insane price you have to pay to treat a family to a sports event, or the skyrocketing investment of secondary education. The impact of the recent inflation has been widespread causing most to look for reprieve.
However, the facts around that reprieve might be sobering for those that are waiting on political parties or markets to come to their rescue.
The truth is that significant deflation has occurred only four times, each coinciding with severe recessions or depressions. This rarity underscores why governments are wary of deflation and lack the tools to induce it without risking economic catastrophe.
Remember the Nixon era price controls? They backfired spectacularly when farmers drowned chickens and poured out milk to create artificial shortages, effectively breaking the ill-conceived policies. The market rendered the government powerless in facilitating deflation.
The current administration's policy is decidedly stimulus-heavy. In this inflationary environment, the key to financial success is clear: earn more and invest in assets. Why? Because you can't out-save appreciation – you need to ride the wave.
Enter real estate – one of the smartest hedges against inflation. Think about it: if the cost of materials and labor (the 'stuff' that makes up real estate) is bound to increase, so too is the value of real estate itself.
Don't let current interest rates and affordability concerns cloud your judgment. History speaks volumes:
- In 2011, the average home price was $166,000
- Today, it stands at a whopping $410,000
This growth occurred despite seeds of doubt about the real estate market's ability to maintain its historic 4% annual appreciation. So, who was right? The numbers don't lie.
The world rewards those who make calculated financial risks. The question isn't whether to invest in real estate, but how to make it work in today's market to secure your financial future.
Consider this: Over a 5-year period, real estate has historically outperformed the stock market. That's not just impressive – it's a call to action. Don't wait to buy real estate. Buy real estate and wait.
So, what steps will you take to position yourself for success in tomorrow's real estate market?
