The Adventures of a Real Estate Investor

AREI 83: Why Multifamily Is A Great Hedge Against Inflation with Suzy & Michael

September 27, 2022 Michael & Suzy Season 2 Episode 83
The Adventures of a Real Estate Investor
AREI 83: Why Multifamily Is A Great Hedge Against Inflation with Suzy & Michael
Show Notes

In this episode, we share why many people are seeking the best inflation hedges to preserve there capital and future purchasing power and how savvy investors protect themselves from harmful effects of inflation by investing in hard assets, particularly multifamily real estate. Come join us and listen in!

What you'll learn,

[00:00 - 02:16]
• Welcome for today's show. 
• The Fed inflation target of 2% per month signifies like a healthy economy and healthy growth has NOT been achieved, because inflation hit 8% on its six month consecutively.
• Why multifamily real estate and not single family for now?
 
 [02:17 - 03:06]
 • 28% increase in multifamily construction
 • Investment options that that savvy investors are looking into:

[03:12 - 07:35]
• 1.Stock Market
• 2.Bonds
• 3.Savings account or CD's 
 
 [07:37 - 10:44]
• The four reasons why multifamily is such a great hedge against inflation:
• 1.Everybody needs a place to live. 
• 2.Rental price increases.
• 3.Appreciaiton (Normal & Forced Appreciation)
• 4.Tax Benefits 

[11:03 - 13:06]
 • Challenges that comes with multifamily real estate during inflation and how you can overcome those. 

Tweetable Quotes: 

"When you are looking into investing in stocks, with multifamily, you look deep into the operator, you look deep into the market, & you look deep into the asset class. You need to be doing the same with stocks in their companies, but there's so much un-foreign fluctuations that can happen all the time, that you cannot control and you will never be able to control that." - Suzy Sevier
 
 Until next time…

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