I have heard many economist lately predict that we are heading straight into a period of extreme inflation. Last night I heard a college professor claim that "elites" are trying to crash the US dollar on purpose to switch the entire globe to one global currency. They plan to accomplish this by forcing high inflation on the people, which will cause civil unrest and lead to a chain of events. Who knows if this is true, but it got me to thinking. Then, a friend of mine on Facebook posted this photo, which seems disturbing to me after listening to economist, and trying to help people with refiancing their homes.
I try to pay attention to all sides of political debates and the one thing that strikes me about this particular line of thinking is that it seems to be the same on all sides. Conservatives, liberals, and moderates all seem to share this "fear of certain inflation" based on how insolent the US debt load seems to be, and also based on the weirdness with China's trade practices and tendency to buy our debt.
I do think we are already seeing inflation, but I am not sure that it is due to the factors the specialists claim. However, I am definitely NOT an economic specialist. But, the price of fuel, pet foods and animal feeds, grains, paper goods and home goods have gone up a considerable amount just since the new year. I have decided that there are certain things that I am going to do to protect my family.
I am in the process of withdrawing money from my 401k accounts and teacher retirement pensions that I have. The reason is that I really do not trust the banks or state with this much of my money any more. If we are going to experience that kind of inflation, I need another plan. If the banks can blow it on the mortgage front, the can blow it on other issues, too. Too many banks are failing. And, trusting the state of Texas with my pension...they have eyes on the TRS monies, and once they start to tap into it, it will start the long chain of events.
So, what am I going to do with this money you ask? BUY REAL ESTATE. The real estate market is depressed right now, and it is a great buyers market. But if this inflation does kick in, real estate values will also become inflated. The real estate will increase in value again. Even if we do not see rampid inflation, over the long term, real estate seems to be one of the best investment options with the best returns. When I look at my parent's investment portfolios and histories it is clear that the best investments with the best returns for them was to have some rental properties.
I only five years I can recoup my money paid toward a new rental. After five years, it is profit. Even if a property sits idle for a few years, (God FORBID!), idealistically it's re-sale value will still eventually increase since prices are so depressed right now. Another factor that led us to this decision is the huge shortage of rental properties available right now in all price points. Because so many people are having problems qualifying for a mortgage, they are turning to leasing.
Because we own a farm, and have several deep-freezers full of meat, and a network of gardener friends, I am not too worried about stockpiling food. I guess that is something we already do. It was pointed out to me this week, however, that there are some things that we have already seen big price increase and I will stock up on these. Mainly, toilet paper. I can live without a lot of stuff, but I don't want to live without that! I also don't want to pay $5/a roll.
If you are worried about this, too, and you are interested in re-investing money and are considering real estate, I'd be happy to help you figure it out. It is a learning process that I have already been through. I already own several very profitable properties. I have learned the ropes. As a school teacher for many years, I'd be happy to share what I have learned from the rental business with you and help set you up. I just set up a friend last week and got her house leased out for her.
Just give me a call, text or email, or even Facebook message. I'd be happy to chat with you about this!
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