Florida Real Estate and Inflation

A constant theme in my conversations with potential customers is that inflation is a key factor in real estate investments. My personal feelings have always been that the inflation indices and calculation historically been somewhat biased and distorted, and that they do not accurately reflect the reality of our currency depreciation in the last two decades.

A short trip in supermarkets and petrol stations and a quick look at your property taxes, insurance bills, the pricea new home is quickly called into question propagates the 2% or 2.5% annual inflation, which in official economic data. All indications that we are going into a period of high inflation caused by huge hikes in oil and food prices fed.

Real estate is a unique, valuable and tangible asset that is not always the case with the stock shares, bonds and other paper investments. The world population is constantly growing, not the amount of available land and rights of recourse. In contrast to a dollar in theBank, its actual value does not shrink from with inflation. Real estate is always at the residence, commerce, agriculture, and be required to industrial use.

My opinion has always been that if we follow certain criteria and rational principles to the acquisition of real estate, there will always be in the long run, the best investment we've ever made. In Florida, this is especially true because we are one of the fastest growing states in the U.S., and we are for a continued migration because of the baby --Boomer from the northern States, Latin Americans and Europeans. The very high standing stock of condominiums and apartments available will eventually absorbed - and realize faster than most of us. Finally, a few years would be low enough to build.

The newspapers, on 17 July 2008 were the talk of a last month inflation rate in the vicinity of 1% or more. Is that scary? Even if they make it clear that due to fuel and food only, while in other products such as clothing, it wasactually negative, I fear, will reflect the longer term, food and fuel, all other components. Not only the transport, heating, are energy, affected by fuel prices.

Virtually every other element will certainly feel the pressure and finally driving the inflation wave.
It is a fact that inflation will start again, it is self-contained feeding and difficulty. Not that I want to be a fear monger, but I have done so in the past and I have seen the banks pay 18% interestCertificates of deposit!

It is true that inflation is a boon for many mortgage borrowers if their interests can be at a fixed interest rate. Imagine paying a mortgage for 30 years at 6% if inflation in the range 10 to 15% and new buyers could be paying 18% fixed price! Impossible? Not really, it has already not so long ago.

That's what they think earlier than most, homes for a strong recovery due. And you better not be late!

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