There’s a lot of doomsaying in the financial space.
Yes, the United States economy is undergoing an inflationary crisis that it hasn’t witnessed in multiple decades.
Plenty of people will see their savings completely obliterated. Especially those of working class economic backgrounds.
It would be a mistake to downplay the economic troubles that lie ahead.
That said, the world ain’t collapsing. Economic crises simply force people to adapt and change their economic behavior.
We see this take place with regards to housing. Again, it bears repeating: The home is the center of the universe.
People will always need a roof over their heads no matter what. Rain or shine, there will always be a demand for housing.
The catch is that the average person having to cope with an economic downturn is going to have to make substantial changes to their economic lifestyles.
Namely, they will probably have to downsize their housing arrangements. In more extreme cases, they will be compelled to rent a house.
Right now, mortgage rates are rising, which is a reflection of a housing market that’s adjusting to novel economic realities.
Many “experts” are already saying that if these mortgage rates continue going upward, people will stop buying houses….
….But this could not be further from the truth.
As mentioned before, rising mortgage rates are just one economic development that compels people to acquire an inferior house in an inferior neighborhood….
…Or they’ll end up renting.
In sum, people will have to accept less.
Income property investors can absolutely exploit this emerging economic dynamic to their advantage.
Inflation is a god-send to the income property investor who takes on a mortgage.
Don’t forget, the value of debt diminishes in periods of mass inflation.
In turn, you don’t have to pay off the debt yourself.
During this entire process, you’ll be outsourcing the debt repayment to tenants.
That’s the beauty of self-liquidating debt. It’s the centerpiece of sustainable wealth-building strategies.
By embracing the power of income properties, you can build an enviable real estate portfolio.
Anyways, we suggest that you check out our very own Jason Hartman’s discussion with Mark Moss about recent mortgage rate hikes and the declining living standards due to higher interest rates.
P.S. To learn more about the secrets of income property investing we strongly suggest joining Empowered Investor Pro.
This is the #1 online community of income property investors in the nation.
Empowered Investor Pro is filled with seasoned pros who know all the tips and tricks to income property investing. Never again will you have to walk in the dark as you invest in real estate.
Are you ready for an investing future laden with steady cash flows?
Join the hottest real estate investing community here:
https://www.empoweredrei.com/empowered-investor-signup1
