JSA Real Estate Blog

Investment Real Estate is Best Hedge to Inflation

Hedge inflation with real estate

In today’s volatile investment world, inflation and it’s impact is at the front of conversations. This Forbes article agrees, real estate investing is best suited for success in times of high inflation. While inflation decreases the purchasing power of your assets (like your cash), it usually increases the earning power of your real estate – as rental rates tend to rise alongside inflation.

If the rapidly rising cost of living is something that is worrying you, consider protecting yourself from it in the best way possible and invest in real estate. By securing an income source that is tied to inflation you do not have to worry nearly as much about your ability to afford things as your income will too grow. A recent article on Investopedia suggests real estate ‘acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values, and therefore the amount a landlord can charge for rent.’ Agreeing that real estate investments can better protect investors in high inflation markets.

Right now is the perfect time to focus on adding income producing rental properties to your portfolio. Consider purchasing the one bedroom that cashflows every month opposed to the two bedroom that may operate at a slight loss monthly and set yourself up for success in the future.

If you’re interested in securing the best investment properties at the best prices reach out to your JSA real estate representative as we have many special off market opportunities available and would love to help you build inflation protection into your investment portfolio.

Jordon Sutton PREC*