Real Estate Investment #3 - protection against inflation

in LeoFinance4 months ago
Real estate tends to recover the purchasing power of money in the long run following inflation, so comparisons with fixed income as usually made by analysts are absurd.


Fixed Income does not produce income and the principal does not value, so it is normal and expected that the percentage of rent in relation to the value of the property is less than the interest on fixed income.

Except that property alone, without rent, it tends to maintain the purchasing power of money, valuing according to long-term inflation and the principal of fixed income does not.

The return of the property adds the capital gain from the valuation of the property with the rent. In fixed income it is only interest and if you use it, the principal is worth less and less due to inflation.

The rental of the property can be used and yet your investment tends to maintain the purchasing power of money by recovering inflation in the long run.

Images: PixBay & Research source: Bastter

Posted Using LeoFinance Beta


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