Breaking News!How investing in Real Estate Can Insure you against inflation amidst the Ukraine Crisis.

How to Invest in Real Estate as a Hedge against inflation

Russian invasion in Ukraine has caused the markets to plummet on Thursday. The USD/RUB currency pair has breached the all-time maximum to trade at 89. 99. The market reversed to a moderate increase after USA President Joe Biden has published the new sanctions plan. On Friday morning, the majority of shares were 5% up, USD/RUB currency pair has rebounded to a level of 83 and continues to decrease. USA market was demonstrating a moderate increase in evening

trade session.

As the value of a home rises over time, the loan-to-value of any mortgage debt decreases, acting as a natural discount. As a result, your property's equity grows while your fixed-rate mortgage payments remain unchanged. Inflation also benefits real estate investors who earn income from rental properties, particularly those in property sectors with short-term lease structures such as multi-family properties, because higher home prices often translate into higher rents. If you can raise your rent while keeping your mortgage unchanged, you may be able to put more money in your pocket. Finally, real estate can be a good inflation hedge because property values tend to rise steadily over time.

Furthermore, multifamily properties such as apartment complexes are a unique asset class in that they are always in demand (especially as housing prices rise), but also have a relatively high turnover rate.

Furthermore, as labor and material costs rise, there may be a limited supply of buildings or new development projects, leading to an increase in rental rates and property values.

Another factor to consider is that expense reimbursements, another lease component, are another way for real estate to keep up with inflation.

The good news is that, even if the predictions come true, real estate is one way to protect yourself from some of the other effects of inflation.

Best,

Caleb Ongoro, GMISK.