Property Values to Increase due to Inflation.

22% of the US Dollars in Circulation now, were printed last year!

Since February 2020, the quantity of money in the U.S. economy has increased by an astonishing $4 trillion - that is a one-year increase of 26%. Some experts believe that the no-expense-spared fight against Covid-19 has put countries on course for rising prices on a scale they haven’t seen in decades.

Property is a great hedge against inflation. As Property prices tend to move in line with inflation, the result will be an increase in Property Values. Several factors make investment properties the ideal asset during inflation:

Real Estate Prices increase when a high inflation rate hits the economy for many reasons: The prices of construction materials increase, developers spend more when building new properties. This leads to an inevitable increase in the price of new real estate projects and existing properties also rise in value due to the reduced supply of new constructions.

The Cost of borrowing will be higher as devaluation of the dollar forces lenders to raise interest rates. This affects both buyers and real estate developers and results in higher property prices.

Rental properties are the most profitable assets during inflation. Owning a Rental Property generates high returns in this climate. Landlords are in an ideal position as tenants are more willing to pay higher rents than take on an unmanageable mortgage, and opt to rent rather than buy. The high demand for Rental Properties means real estate investors will be able to capitalize by charging more rent. Rental rates to soar and high rental income coupled with the low vacancy rates will help generate a very high return on investment for Landlords.

 Real Estate Appreciation offsets inflation: Owning Property is a highly effective hedge against rising prices which protects property investment from the devaluing effects of inflation. 

There has never been a better time to Invest in Your Future Home in Paradise.

Contact Me: Rosalyn Brown (242) 376 1249 [email protected]

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