It’s safe to say that inflation is a generalized economic development not only in America but in the rest of the Collective West.
However some areas are more impacted than others.
Europe, for example, will likely be rocked by an economic upheaval that could fundamentally change its economic living standards for generations to come.
This is a region that’s marked by massive welfare states, suffocating bureaucracies, and some of the most brain-dead energy policies on the planet.
The last point is particularly crucial for people to grasp.
Most of Europe has bought into the green mania which has rendered its traditional non-renewable energy sector practically useless.
As a result, Europe is in a whole world of economic hurt. For the first time in decades, Europeans are faced with the dim prospect of reduced living standards and generalized impoverishment.
This would have been unthinkable in previous decades. After all, many Westerners have been led to believe that prosperity was practically guaranteed for decades to come. Nothing could shake the West off of its illustrious path.
Unfortunately, the West has received a harsh dose of economic reality throughout the COVID-19 pandemic. And doubly so, with regards to its misguided sanctions war against Russia for its war with Ukraine.
All of those destructive policies are beginning to add up and create a complete maelstrom of economic doom for many Western countries.
Americans should count their blessings. They live under a system of nominally limited government where private property is respected and there’s a pro-business ethos that can’t be found elsewhere.
However, there are numerous political actors and intellectuals who want to radically transform the US and make it look like another over-regulated European state.
Pretty bad stuff.
But guess what?
You can’t fully control politics. In fact, it’s often a net negative to focus so much on it.
On the other hand, building wealth is one activity that you can still engage in that will yield you positive results.
You see, inflation is a blessing for those of you who are income property investors.
When you take out a mortgage, your overall debt load decreases as a result of the inflation. In effect, you pay off your debt with cheaper dollars.
On top of that, you benefit from Packaged Commodities Investing.
When you purchase a property, you need to figure out if it’s a house, an apartment complex. etc.
Subsequently, you’ll end up figuring out that you’re actually purchasing two components.
One of those components is the land and the other component is the structure the land is sitting on.
Any house in your income property portfolio is going to be composed of commodities. These very commodities are traded across the globe and are not indexed to a given currency.
Put simply, commodities have intrinsic value. Basically, if the Dollar or any major currency were to vanish, people could still transact in commodities such as concrete, lumber, and petroleum products, among other products.
These are just several of the components that go into a house.
When thinking about investing in an income property, you have to treat it like investing in commodities.
There is a key difference though. In contrast to commodities investors, who generally acquire commodities on mercantile exchanges, you have the opportunity to finance the packaged commodities included in the house for three decades…..
…all with artificially cheap fixed rate debt that can be deducted in your taxes.
That’s the power of packaged commodities investing.
The commodity products that make up an income property are essentially packaged in a residential home instead of laying inside of a warehouse. Plus, these commodities packaged into real estate investments can then be rented out to tenants, who end up assuming the interest payments.
Packaged commodities investing is just one of several perks of getting involved in the income property game.
Income properties are your best friends in times of economic peril.
In the meantime, make sure to check out Jason Hartman’s video featuring commentary from geopolitical analyst Peter Zeihan.
Find out why Europe is in for a decade of rough economic conditions here.
P.S. You can learn about packaged commodities investing and other game-changing investing concepts in greater detail at Empowered Investor Pro.
Empowered Investor Pro is the premier community for income property investors in America.
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