Safe or Sorry? Will Rising Inflation Help or Hurt Property Investors?
In his historic, first-ever press conference in April, U.S. Federal Reserve Chairman Ben Bernanke finally admitted that inflation has grown and is expected to rise higher. For those of us driving to work, buying groceries, paying tuition fees for our kids, trying to make repairs to our houses and apartments, etc., it has been high for quite some time. Prices for building materials, most commodities, gasoline, tuition and many other items on my and probably your list went through the roof. The Feds’ technical talk and a narrow view on inflation that excludes gasoline and food prices didn’t fool us. We prepared ourselves early on by investing in commodities, hard assets and especially in real estate assets.
Real estate is a reliable inflation hedge, according to a widely held belief, and investors with real estate assets can sleep soundly, assured that the income they derive from their properties will increase as business activity, salaries, and prices for goods and service