Under normal circumstances, real estate during inflationary period makes perfect sense because debt (mortgages) held against the property generally gets inflated away over time during high inflationary periods. Unfortunately housing has been in a bubble for some time now and to expect housing prices to continue to climb indefinitely isn’t realistic even with wages climbing recently.
One of our favorite real estate Youtuber, Reventure Consulting feels that housing is a bubble about to pop and the video is worthwhile watching:
While we strongly feel investing in Real Estate is a prudent thing to do, we opted to invest in REITS (ILPT, TWO) to reap income via dividends. CNBC recently had a report out that agreed with our assessment. If companies plan to rethink just-in-time economic models in favor of re-shoring and/or broadening local inventory space then industrial type of real estate should continue to boom.
In a future post, we will write about potential real estate properties as rentals and the methodology for acquiring the right properties to rent out.
Stay tuned and stay solvent…
Disclosure: As of the posting of this article, one or more members of the Econonaut have position(s) in ILPT and TWO.