IS AN INVESTMENT IN REAL ESTATE A HEDGE AGAINST THE COMING INFLATION??!

1. All income generating real estate is a hedge against inflation so long as managers raise rents in keeping with the market.

2. Debt Financed real estate during inflationary times causes the debt to reduce in real dollars. As prices increase your are servicing the debt with inflated dollars.

3. Construction/Improvement costs will increase.

4. The value of your investment will rise with inflation. In summary, properly managed, real estate is a natural hedge to inflation with the investment value and investment income increasing with inflation while the debt value remains steady.

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