Don’t let inflation get you down—real estate investments can protect you.
Across the board, prices for various goods and services have gone up due to inflation, and the same is true of real estate. That’s one reason why real estate is such a great hedge against inflation. Today I’ll discuss three ways to invest in real estate and why they’re so great for keeping the effects of inflation at bay.
1. Your primary residence. If you don’t own a home currently, now is a great time to think about buying one. Owning a home longterm grants you the benefits of appreciation and various tax benefits.
2. Long-term rentals. If you were lucky enough to buy a home when interest rates were extremely low, you likely have some equity built up in that property. It may be a good idea to keep it for a long-term rental if you have the funds to buy another primary residence. Your tenants will help you pay off the mortgage and provide you with a solid investment.
3. Short-term rentals. Vacation rentals are very popular around the Finger Lakes region. Those who have bought second homes have turned them into rentals with companies like Airbnb and Vrbo for when those properties aren’t being used. Though they rent for shorter periods than long-term rentals, short-term rentals still bring in lots of money to our area.
If you’re thinking about turning to real estate to provide a hedge against inflation or if you have any questions, give me a call or send me an email. Let’s talk about your investment options.