For many, home ownership represents the ultimate investment, perhaps because it is so engrained in our ideas about the American Dream. But it’s tricky—one of the signs of a good investment is its ability to make money. For most of us, this isn’t the case with a home. If you’re lucky, you’ll make some money when you sell your house, but it certainly isn’t going to produce income. A house isn’t an investment—it’s a liability.
Good investments most always be sustainable. Jason Hartman and his team offer a Portfolio Makeover™ as part of an investment counseling session that addresses these goals of sustainability. Income properties, however, are a sustainable way of investing. Not everything is though.
Ben Bernake said in an interview that we know this is inflationary and when we see that, we use other tools to rein in inflation. It isn’t so simple though—money isn’t easily soaked up once it is in the world. Inflation likely won’t be reined in, but we can be certain that the government will attempt it by closing the discount window, tightening credit, raising the reserve rate, etc.
Unfortunately, it won’t be enough because the amount of money being created now and the amount of money that will need to be created in order to keep the $60 trillion promise is extreme. The government doesn’t control the long-term rates either.
To make your income property investments more sustainable, it is a good idea to invest in multiple states. This way, you’ll be able to hedge a bit. Owning property in good states gives you a diversified portfolio that will make you money as local markets fluctuate. While we recommend travel, we’re not quite ready to recommend international properties yet because governments outside the US are just so corrupt.
International investments can be very high risk because they’re far away, expensive, and subject to shady government. While you should be area agnostic, you should also make smart, well-informed decisions. The great thing about working with Jason Hartman is that your areas are checked out before they’re even approved as a place where you might invest. They’re always markets where someone on staff has personally invested, so you know that they’re going to be the best.
Developing a portfolio and then giving it a Portfolio Makeover™ will get you set up to begin making real, sustainable income. As you begin to build wealth, you’ll find that going green (especially with your cash!) is the only way to go!
(photo credit: kevin dooley via photopin cc)
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The Jason Hartman Team
