Everyone has probably heard about inflation and is worried that with the current financial crisis, it will go rampant. This is a scary thought and definitely no laughing matter but, as Jason Hartman has pointed out, inflation can also be our friend. Those who were not battered by the mortgage bubble are now in a position to acquire good debt and that is something to smile about.
What is good debt? This is borrowing large amounts with low interest rates over a long period of time to buy something that will not lose its value. Borrowing for a house mortgage is a perfect example of good debt. Paying off this debt over time means that the money you initially borrowed is worth more than the money you are paying back due to inflation. This gives the upper hand to the debtor and not the creditor.
It is true that house values did not rise throughout the last few
years as expected, but they are starting to pick up again and it is not too late to get a great property for a cheap price. Stepping towards the investment of rental properties is an ideal move for those who can afford it, since the mortgage can be paid off by the renters, leaving you with the opportunity to expand your wealth. The excellent news for future rental investors is that right now the market is saturated with pe
ople looking to rent.
The devastation of the mortgage meltdown left many individuals and families out of a home when they could no longer afford their house payments. These individuals still need a place to live and this is where you as an investor benefit. A rental property can pay for itself over time when it is rented out and inflation can be offset easily by rising housing costs. Researching has to be done before diving in, so do not hesitate to ask experts and read what Jason Hartman has said about the subject in his blogs and podcasts. You do not have to start this lucrative journey alone and experts are glad to help you avoid the pitfalls that they have faced on their road to success.
Begin to gather knowledge and to look for ideal properties to rent today, because the longer you wait the lower the chances of finding a diamond in the rough. The market has been shown to pick up and that is great for the economy, but not great for non-property owners. Rising house prices only helps those who already own the property, so start looking around today. Independent wealth is a real possibility. (Top image: Flickr | lumaxart)
The Young Wealth Team