Investment real estate is an incredible hedge against inflation. A lot of us have heard this, but what does it mean?
Every notice why things just get more expensive year after year? Food, cars, health care, gas... everything? Well rent usually goes up in an inflationary environment too!
Furthermore, when you use leverage to purchase real estate, you are borrowing money at today's value and paying it back in depreciated dollars over time.
The bottom line? Your cash flow grows over time as well as the underlying asset value, simply BECAUSE the cash flow is growing!
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Matthew Drouin is a full time real estate investor and REALTOR with 12 years of acquisition, disposition, development and management experience in Rochester, NY.