Investing in Real Estate Takes Center Stage with Trump Election
Trump Made His Billions in Real Estate. Should You Do The Same?
Synopsis: Real estate is a tangible asset. If you own real estate in your local community, you can drive by it. You can take pictures of it. You can collect income from it. If Trump made billions on real estate the least you can do is make millions with the right location and the holding power to hang on to it. Watch the interview with best-selling author, real estate economist and talk show host of the Real Wealth show, Kathy Fettke.
Historically, home values have risen consistently with inflation and often far exceed it. In many areas of the country, homes will appreciate at 1.5 times the rate of inflation or more. If you remove the 2008 housing fiasco, real estate can be a great buy and asset for your portfolio. Even in the great depression where all goods and services depreciated, including real estate, property, in comparison, didn’t depreciate as much against other assets. So all things being relative, it was a hedge back in the day.
Rents also increase with inflation. If you own rental property, that means your rental income will likely increase every year right along with inflation. It’s as if you get an automatic pay raise every year for doing nothing. Supply and demand will always govern rent increases, but overall rents do increase and can be an active hedge against inflation.
And it gets even better if you use financing! If you can imagine inflation eating up your cash and home equity, now imagine that same beast eating away at your debt. In general terms real estate debt is leverage on other people’s money. Interest rates are low and rental demand is on a steady trajectory, so putting the minimum down over the long haul could be a good mid to long term play.
This press release contains selected content from Kathy Fettke’s Amazon Bestseller, Retire Rich with Rentals.