The average rate of inflation over the past hundred years is 3.22%. It doesn’t seem like much, but at that rate prices double every 20 years!
That means if you buy a property for $1 million, in 20 years is should be worth $2 million, in 40 years $4 million, and 60 years it should be an astonishing $8 million.
Over the long run, pricing doubling due to inflation is the rule, not the exception. For that reason, investing in real estate is a sound long term investment. Especially when you consider you can leverage your real estate purchase, usually by 4 or 5 times your investment. You leverage the investment by putting 20% or 25% down and getting a loan for the rest.
As long as the investment breaks even on a month to month basis (or better yet has some cash flow), when it comes time to retire you will have built a massive nest egg and possibly even a legacy for future generations.
You should consider an investment in real estate. You can start small with a few rental properties or go big with a large multi-unit apartment or commercial complex. There are investment opportunities in real estate of all different types and sizes.
Contact us if you want to make a game plan to start investing in real estate.
