AREI 83: Why Multifamily Is A Great Hedge Against Inflation with Suzy & Michael
In this episode, we share why many people are seeking the best inflation hedges to preserve there capital and future purchasing power and how savvy investors protect themselves from harmful effects of inflation by investing in hard assets, particularly multifamily real estate. Come join us and listen in!
What you'll learn,
[00:00 - 02:16]
• Welcome to today's show.
• The Fed inflation target of 2% per month signifies a healthy economy and healthy growth has NOT been achieved, because inflation hit 8% on its six months consecutively.
• Why multifamily real estate and not single family for now?
[02:17 - 03:06]
• 28% increase in multifamily construction
• Investment options that that savvy investors are looking into:
[03:12 - 07:35]
• 1.Stock Market
• 2.Bonds
• 3.Savings account or CDs
[07:37 - 10:44]
• The four reasons why multifamily is such a great hedge against inflation:
• 1. Everybody needs a place to live.
• 2. Rental price increases.
• 3. Appreciation (Normal & Forced Appreciation)
• 4. Tax Benefits
[11:03 - 13:06]
• Challenges that comes with multifamily real estate during inflation and how you can overcome those.
Memorable Quotes:
"When you are looking into investing in stocks, with multifamily, you look deep into the operator, you look deep into the market, & you look deep into the asset class. You need to be doing the same with stocks in their companies, but there are so much un-foreign fluctuations that can happen all the time, that you cannot control and you will never be able to control that." - Suzy Sevier
Until next time…
Explore more. Adventure awaits.
