How far will inflation go?
Should we be worried as we invest in real estate; an historic hedge on inflation?
What about national debt?
Is it really manageable or is it careening out of control?
These are questions on every [tag-tec]real estate investor[/tag-tec]’s mind. And for good reason.
According to Tom Raum of the Associated Press, we’re going into more debt at a rate of $1 million per minute. That’s 1.4 billion per day.
As long as this country spends more than it takes in, debt will be a problem. This generation can not solve it unless we change out mindsets that’s it’s okay to spend like drunken sailors.
Still, should we invest in real estate?
Yes.
What about all the depreciation talk? After all, real estate prices are going down in certain areas of the county.
Those prices are going down because of a past wild market. Prices are getting in line now as that strange anomaly subsides. It doesn’t take a rocket scientist to figure that out.
In the years to come, real estate prices will rise once again, maybe not at that breathtaking whirlwind pace, but real estate has always been a good place to park depreciating dollars. And the dollar is definitely going down in value.
So what are we supposed to think when we read the gloomy forecasts for our national debt?
I don’t know about you, but I’ve lived with this most of my life. Sure, I don’t like it. They( Washington) could and should do better. They spend entirely too much.
But we shouldn’t let the negative rule our lives and our business decisions. Smart people have always made, and kept money, even under the worst of circumstances. Nobody said market conditions have to be perfect, or even good.
That reminds me of the wartime stories about people fleeing Nazi Europe. Many of them carried their wealth out in the form of jewelry and precious stones.
But our situation is not that bad and I don’t think it will get that bad. Plant your money in the ground, or real estate, and watch your dollars grow.
National Debt Grows $1 Million a Minute
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