Tag Archive for: inflation hedge

THE BIGGEST PROBLEM IN REAL ESTATE Right Now – And How To Overcome It!

BARRY HABIB HATES CNBC’S DIANA OLICK! Mr. Habib is one of the macro pundits I cite very often because he is correct so often. “Hate” may also be too strong of a word, as Mr. Habib is very professional, but he clearly has tremendous disdain for Ms. Olick – and this is why: Ms. Olick […]Read More

Much Lower Interest Rates By March; Why & What It Means

On Thursday, CPI (inflation data) came in lower than expected – and we saw one of the largest one-day rate drops ever. I of course blogged about it here: THIS IS HUGE! Inflation & Rates PLUMMET. My biggest takeaway though wasn’t just that inflation and rates dropped; it was to point out how correct the […]Read More

Is the Airbnb/Short-Term Rental Market Crashing?

My wife Heejin and I were looking at a property in Park City, Utah last year, and the agent explained to us how easy it would be to turn it into a short-term rental and how “everyone was doing it.” And – I thought to myself… “uh, oh… holy potential glut of short-term rentals, Batman!” […]Read More

Why EVERYONE Needs A House as an Inflation Hedge Now More Than Ever!

I often blog about reasons to buy a property, as there are many: (1) avoid rising rents with a fixed housing payment; (2) tax advantages; (3) ability to do what you want with the home; (4) forced savings/retirement nest egg; (5) pride of ownership; and (6) inflation hedge. BUT – I don’t think I drive […]Read More

Why Major Inflation Is Inevitable – At Some Point (What To Do About It)

The world is facing massive energy and commodity shortages due to a lack of investment over the last several decades, and it will take decades more to replenish supplies and/or to find alternatives.Read More

Why Bill Gates Is Buying Up ALL of America’s Farmland?

Bill Gates is now America’s largest owner of farmland, by far - alarming many people and making others simply wonder what the heck he is up to. I set out a few possibilities below, before delving into what I think the real reason is.Read More

A Home Is Your Castle Against Rising Inflation

My title is the exact headline from this recent WSJ column by economist Laurence Kotlikoff. The first line of his column was this: “Mortgage rates are up to 5%, and some fear a valuation bubble. Even so, it’s a good time to buy.” I have been beating the “houses-equal-inflation-hedge” dead horse for years now, but […]Read More

4 Reasons Why Real Estate Is One of The Best Inflation Hedges!

INFLATION ON THE HORIZON Major inflation seems all but inevitable in light of our burgeoning supply chain issues, massive government spending, enormous money supply infusions (printing), climbing CPI numbers, and skyrocketing PPI numbers. Because of this, I want to remind everyone why real estate is one of the best inflation hedges available. By “inflation hedge” […]Read More

Why COVID-19 Is Not Hitting Housing Prices

A few weeks ago, I blogged about why we are not seeing more foreclosures despite our severe recession and a huge number of delinquent borrowers. The reasons include: (1) borrowers have more equity and won’t abandon it; (2) lending guidelines have been much stronger since 2008; and (3) the housing market is on fire, making […]Read More

“The Next Housing Boom Is Closer Than You Think”

The title of this blog is taken directly from this blog by Stansberry Research. I have hit the topic of a strong housing market numerous times in recent months but am hitting it again for several reasons: (1) Stansberry Research normally touts stocks, so when they shift to touting housing it means something; (2) some […]Read More

Yes, We Have Inflation Now – ASSET Inflation; Real Estate = Inflation Hedge

When I tout real estate as an inflation hedge, I often get comments like this: “Dude, we are seeing DEFLATION now; INFLATION is the least of our concerns….” I then get examples of items that are far less expensive now such as gasoline, cars (way cheaper now for all the tech, speed and safety we […]Read More

What Your Clients Want to Know; Wage Inflation Too

All of our clients – past and present – want to know two things right now: (1) what is really happening to mortgage interest rates; and (2) what is happening to home values – particularly their own. I know this b/c we are getting so many inquiries from clients, and, more significantly, b/c so many […]Read More

Inflation: The One Reason No Buyer Should Get Cold Feet

Everyone knows there are many reasons to buy a home, including: (1) enjoying the pride of ownership; (2) locking in a low interest rate; (3) fixing your housing payment; (4) taking advantage of tax savings; and (5) building equity, among other things. But, most people do not appreciate how important real estate can be as […]Read More

Is Inflation Back? Houses Are An Inflation Hedge!

INFLATION RAVAGED THE 1970s The only thing that ravaged the 1970s more than the bad music, hair and clothes was the high rate of inflation. High inflation rates hurt economies b/c they create uncertainty, increase interest rates and decrease purchasing power and economic investment, among other things. Inflation is primarily a result of the Fed […]Read More

Why Buy A House Now?

There are many reasons to buy a home, and here are a few reasons for buying now: 1. To lock in historically low interest rates. Even though rates have climbed a bit in recent months, they remain extremely low by historical standards. Rates were in the 10%+ range for most of the 1980s, in the […]Read More

The Very Strong Long Term Case For Real Estate/Home Ownership

Financial publications occasionally make the case that renting is better than buying for some people, illuminating lower housing payments, and the avoidance of transaction and maintenance costs. The analyses often ignore the benefits of a fixed housing payment (rents go up), tax savings, and potential appreciation in hot markets, etc. There is, however, one more […]Read More

Inflation Concerns Explained – How They Affect Real Estate

The Fed is expected to raise short term rates this month b/c employment numbers are adequately strong. But, one area that remains a concern is inflation, or the lack thereof. The Fed actually desires a little inflation, and they do not understand why there is so little. The WSJ had an article this morning on […]Read More

Low Rates & Inflation? Houses Are Perfect Hedge

Forbes Columnist David Dreman’ s most recent column is about how the Fed’s efforts to keep rates artificially low is keeping the economy weak (which in turn keeps rates low). He also points out how holding rates artificially low for so long always leads to inflation, sooner or later. The good news in all this […]Read More