This was an unpredictable last year for the economy, there’s no question about it! Stay-at-home orders, businesses shut down, businesses booming, inflation, and the crazy real estate market. We find a lot of people asking if it’s the best time to invest in real estate as inflation increases. Our short answer: YES. Real estate is the asset that performs the best during inflation. Keep reading to unpack why now is the best time to profit from inflation:

The impacts of inflation on Real Estate

Throughout our economic history, real estate has typically been a hedge protection against inflation. As inflation causes housing prices to rise, property values also increase.

Rates of appreciation have historically been higher than inflation rates, meaning your property value increases faster. When we encourage communities to continue investing in real estate it serves as protection against the devaluing effects of inflation.

Commercial real estate building

Real Estate versus other investments

When it comes to investing strategically, you want wealth-creating vehicles that will afford you both time and freedom. There are several ways to invest your money and generate wealth, but real estate investing has benefits other investments can’t touch. It’s passive, profitable, and smart. While assets with fixed long-term cash flow, such as stocks, bonds, and savings, have value in building wealth over time, they tend to perform poorly as inflation rises.

Real estate is an investment that can start paying you back almost immediately. It’s also an asset that only requires part of your own money in the deal as opposed to stocks where you’re required to provide 100% investment upfront.

What this means for you as a Real Estate investor

Rapid inflation can drive up house prices and lead to many potential buyers being priced out of buying a property. As the cost of financing increases, fewer people will buy homes and more will turn to renting. In turn, we can expect to see lower vacancy rates. High demand in rental properties allows opportunities to increase rental prices for more money in your pocket and into retirement.

Woman talking with investors

Is this the right time for you to invest in Real Estate?

Do you want to make a profit with inflation? We venture to guess that investing in real estate has been on your radar, but you’ve been waiting for an opportune time in the market. After the year we’ve all had, we believe now is the best time to invest. Let us do the heavy lifting to save you time and stress. 

With Blackarc Investments and Property Management, your part is easy! You invest and then we carry the rest of the load. To give you a glimpse of our process: We find the right property, we secure the financing, we upgrade your property, we manage the property, and then YOU get the passive income paycheck and depreciation.

Let’s talk

Schedule a meeting with us to see how we can make your real estate investing simple and profitable. We are a Premium Real Estate Investment and Property Management Company in Billings, Montana.