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Does Trump Mean Bigtime Inflation?

Started by steveF
about 9 years ago
Posts: 2319
Member since: Mar 2008
Discussion about
Any thoughts? Is real estate(hard asset) the investment to own since money will be everywhere igniting inflation? I think so. Any other thoughts?
Response by 300_mercer
about 9 years ago
Posts: 10577
Member since: Feb 2007

Real estate more than anything else is related to job and earnings growth in an area. Inflation benefit will be negated by higher rates. However, if there is inflation of say 3 percent per year and 10y is still below 3 percent due to excess liquidity globally, real estate will benefit.

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Response by 300_mercer
about 9 years ago
Posts: 10577
Member since: Feb 2007

Sorry, forgot to mention new development supply in the segment you are looking in.

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Response by 30yrs_RE_20_in_REO
about 9 years ago
Posts: 9881
Member since: Mar 2009

If inflation rises, what do you think will happen to interest rates?

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Response by 300_mercer
about 9 years ago
Posts: 10577
Member since: Feb 2007

Rates go up but there is no guarantee that 10y will go up if the central banks do not sell. However, incomes and rents also go up when the inflation goes up which dampens the impact of rate rise.

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Response by 30yrs_RE_20_in_REO
about 9 years ago
Posts: 9881
Member since: Mar 2009

If rents go up 6% due to inflation and interest rates go up 3%, what do you think happens?

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Response by 300_mercer
about 9 years ago
Posts: 10577
Member since: Feb 2007

30, Obviously you have some you want to say. What is your best guess and answer to SteveF's question?

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Response by 30yrs_RE_20_in_REO
about 9 years ago
Posts: 9881
Member since: Mar 2009

No.

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