Jun 17, 2022
How do we survive the carnage in the markets? Alejandro Szita urges us to turn to real estate, which behaves differently than many other investments and has potentially promising outcomes in our tumultuous economy. Commodity prices going up allude to future home values going up, which makes real estate a sector worth exploring and investing in. Tune in for more expert insight.
-It’s the day after carnage in Wall Street. The question is, how do we survive this?
-Peak inflation is not here, but rather, it is down the road
-Is real estate a hedge against inflation, or is it just like any other investment?
-The real estate market has confusing signals; it is driven by demand and interest rate
-Increasing rates have had an interesting effect on real estate
-On a large loan, 2% makes a huge difference
-In California, governments have been restricting the supply of homes; officials have varying intentions
-Housing doesn’t behave the same in every county—each market is local
-It’s important to focus on what you can control, such as how you spend/leverage your money
-Real estate is still a way to leverage your income and acquire an asset
-When cash flow is going down, your future bill is going to be small
-We discuss the different between rate and volume of interest
-We talk about what is referred to as inflation-induced debt destruction
-As the price of commodities that make up your home go up, the price of your home after inflation also goes up