INFLATION AND REAL ESTATE: WHAT EVERY INVESTOR NEED TO KNOW


In most economies, inflation is a common occurrence. Indeed, it is frequently regarded as a precursor to the conclusion of an economic cycle. Naturally, a rapid increase in inflation can have a huge impact on a variety of industries and investment portfolios, and investors who don’t know how to navigate it will be wiped out.

⏺️But how does real estate investment fair in the face of inflation?
⏺️What happens to real estate when prices rise?
⏺️Is inflation beneficial to real estate?

Inflation has a number of real estate-related consequences, including higher mortgage rates, rising asset prices, depreciation of long-term debt, increased building costs, and so on.

Let’s look at how inflation affects real estate assets and mortgages, as well as how investors might position themselves in a high-inflation climate.

When interest rates rise, which usually happens during periods of economic expansion, different asset classes react differently. Rising interest rates erode bond principal, affect the value of stocks and other financial assets, and have an impact on debt interest payments.

Real estate investments, on the other hand, have the ability to perform well in a rising rate environment.
Income-generating real estate and multifamily, in particular, have historically — and as an investor and developer — demonstrated a stronger propensity to produce net income during expansionary periods than equities and other assets.

There are many more elements that influence real estate values in the actual economy. Interest rates is another key element for real estate prices to rise.

When borrowing rates are low, purchasing a property is more affordable, which increases demand. If the supply of homes remains constant but demand rises, housing prices will rise as well.

�What Exactly Is Inflation?
Before I can answer the aforementioned questions, i must first define inflation.

It is, in simple terms, an increase in the price of products and services over a period of time.

There are various reasons why a market experiences inflation.

⏺️Excess aggregate demand and cost-push variables are the most important.

A rise in demand for specific products and services is an excellent illustration of the former. In the case of the latter, increases in wages, production costs, and the cost of raw materials will almost always result in a high rate of inflation.

�Effects of Inflation on the real estate market

⏺️1. Mortgage rates may rise as a result of inflation
In general, interest rates rise in lockstep with inflation. When inflation rises, central banks often boost short-term interest rates to reduce inflationary pressures.

When interest rates are low, customers are more likely to borrow, resulting in more money to spend. This causes inflation to rise. Consumers will save more rather than spend as central banks boost interest rates to combat inflation because higher interest rates offer better returns. With reduced consumer spending, inflation is expected to fall.

Advisors and investors should be mindful, however, that as mortgage rates rise during inflationary periods, demand for real estate tends to fall as debt becomes more expensive. The consequent drop in demand may have a detrimental influence on asset prices.

⏺️2. Rents will skyrocket
Inflation raises everything prices, including rentals. Occupancy rates often climb when home production slows and demand for existing units rises. In such circumstances, landlords boost rents, resulting in increased revenue (and increases property value)

One of the most visible effects of inflation is a rise in rental rates. Because mortgages are so expensive, most people will choose to rent rather than own. Landlords will boost their rental rates as a result of the high demand for rental homes and the influx of tenants. In this economic situation, owning a rental property puts you in a great position because tenants are more ready to pay higher rents rather than take on an unaffordable mortgage.

⏺️3. Inflation causes property values to rise
When the economy experiences a high rate of inflation, real estate values will rise as well. The reasons behind this are straightforward,because construction materials will be more expensive, developers will spend more on new properties. As a result, the cost of new real estate properties would inevitably rise.

Real estate prices rise in tandem with inflation as the cost of living rises. In general, when inflation rises, housing and other real estate asset prices rise with it. However, as mortgage rates rise, demand for real estate tends to fall since debt becomes more expensive.

⏺️4. Construction expenses rise as a result of inflation
Because inflation raises the cost of everything, the cost of construction materials will rise as well. There’s a lot that goes into real estate construction, and if inflation rises, all of those prices will rise as well.

Inflation raises wages, machinery costs, and construction supplies, as we all know. Developers and investors are also put in a situation where cost overruns are far more likely. If you planned a construction project several years ago in an inflationary climate, you’ll need to factor in the cost of all building materials and labor.

Because an inflationary environment usually results in increased rents and asset prices, real estate is thought to be a good inflation hedge. This is due to some major factors:

⏺️Rents rise in tandem with inflation.
⏺️Inflation raises the property’s value.
As the value of the debt declines, the debt on your asset devalues.
With that stated, high-inflation situations should be avoided by investors, partly because borrowing costs will rise, placing downward pressure on cash flows and real estate demand if you wish to sell. It also raises the expense of new real estate development.

�Bottom Line
Given the current economic position, inflation appears to be unavoidable. Understanding the reasons behind this occurrence is critical for successfully navigating a market that will soon be affected by rising costs.

In a turbulent global economy, privately owned, high-quality real estate with predictable income streams can be a good investment. Real estate has long been praised by advisors and investors for its capacity to weather inflationary pressures while keeping and growing value, in addition to its comparatively high yields, moderate volatility, and various portfolio diversification benefit.

For more updates relating to Real Estate/Landed Properties/Real Estate Investment

Follow my Facebook Page �www.facebook.com/realtorjonathanc
Follow my Instagram Page � www.instagram.com/realtorjonathan_

INFLATION AND REAL ESTATE: WHAT EVERY INVESTOR NEED TO KNOW


In most economies, inflation is a common occurrence. Indeed, it is frequently regarded as a precursor to the conclusion of an economic cycle. Naturally, a rapid increase in inflation can have a huge impact on a variety of industries and investment portfolios, and investors who don’t know how to navigate it will be wiped out.

⏺️But how does real estate investment fair in the face of inflation?
⏺️What happens to real estate when prices rise?
⏺️Is inflation beneficial to real estate?

Inflation has a number of real estate-related consequences, including higher mortgage rates, rising asset prices, depreciation of long-term debt, increased building costs, and so on.

Let’s look at how inflation affects real estate assets and mortgages, as well as how investors might position themselves in a high-inflation climate.

When interest rates rise, which usually happens during periods of economic expansion, different asset classes react differently. Rising interest rates erode bond principal, affect the value of stocks and other financial assets, and have an impact on debt interest payments.

Real estate investments, on the other hand, have the ability to perform well in a rising rate environment.
Income-generating real estate and multifamily, in particular, have historically — and as an investor and developer — demonstrated a stronger propensity to produce net income during expansionary periods than equities and other assets.

There are many more elements that influence real estate values in the actual economy. Interest rates is another key element for real estate prices to rise.

When borrowing rates are low, purchasing a property is more affordable, which increases demand. If the supply of homes remains constant but demand rises, housing prices will rise as well.

�What Exactly Is Inflation?
Before I can answer the aforementioned questions, i must first define inflation.

It is, in simple terms, an increase in the price of products and services over a period of time.

There are various reasons why a market experiences inflation.

⏺️Excess aggregate demand and cost-push variables are the most important.

A rise in demand for specific products and services is an excellent illustration of the former. In the case of the latter, increases in wages, production costs, and the cost of raw materials will almost always result in a high rate of inflation.

�Effects of Inflation on the real estate market

⏺️1. Mortgage rates may rise as a result of inflation
In general, interest rates rise in lockstep with inflation. When inflation rises, central banks often boost short-term interest rates to reduce inflationary pressures.

When interest rates are low, customers are more likely to borrow, resulting in more money to spend. This causes inflation to rise. Consumers will save more rather than spend as central banks boost interest rates to combat inflation because higher interest rates offer better returns. With reduced consumer spending, inflation is expected to fall.

Advisors and investors should be mindful, however, that as mortgage rates rise during inflationary periods, demand for real estate tends to fall as debt becomes more expensive. The consequent drop in demand may have a detrimental influence on asset prices.

⏺️2. Rents will skyrocket
Inflation raises everything prices, including rentals. Occupancy rates often climb when home production slows and demand for existing units rises. In such circumstances, landlords boost rents, resulting in increased revenue (and increases property value)

One of the most visible effects of inflation is a rise in rental rates. Because mortgages are so expensive, most people will choose to rent rather than own. Landlords will boost their rental rates as a result of the high demand for rental homes and the influx of tenants. In this economic situation, owning a rental property puts you in a great position because tenants are more ready to pay higher rents rather than take on an unaffordable mortgage.

⏺️3. Inflation causes property values to rise
When the economy experiences a high rate of inflation, real estate values will rise as well. The reasons behind this are straightforward,because construction materials will be more expensive, developers will spend more on new properties. As a result, the cost of new real estate properties would inevitably rise.

Real estate prices rise in tandem with inflation as the cost of living rises. In general, when inflation rises, housing and other real estate asset prices rise with it. However, as mortgage rates rise, demand for real estate tends to fall since debt becomes more expensive.

⏺️4. Construction expenses rise as a result of inflation
Because inflation raises the cost of everything, the cost of construction materials will rise as well. There’s a lot that goes into real estate construction, and if inflation rises, all of those prices will rise as well.

Inflation raises wages, machinery costs, and construction supplies, as we all know. Developers and investors are also put in a situation where cost overruns are far more likely. If you planned a construction project several years ago in an inflationary climate, you’ll need to factor in the cost of all building materials and labor.

Because an inflationary environment usually results in increased rents and asset prices, real estate is thought to be a good inflation hedge. This is due to some major factors:

⏺️Rents rise in tandem with inflation.
⏺️Inflation raises the property’s value.
As the value of the debt declines, the debt on your asset devalues.
With that stated, high-inflation situations should be avoided by investors, partly because borrowing costs will rise, placing downward pressure on cash flows and real estate demand if you wish to sell. It also raises the expense of new real estate development.

�Bottom Line
Given the current economic position, inflation appears to be unavoidable. Understanding the reasons behind this occurrence is critical for successfully navigating a market that will soon be affected by rising costs.

In a turbulent global economy, privately owned, high-quality real estate with predictable income streams can be a good investment. Real estate has long been praised by advisors and investors for its capacity to weather inflationary pressures while keeping and growing value, in addition to its comparatively high yields, moderate volatility, and various portfolio diversification benefit.

For more updates relating to Real Estate/Landed Properties/Real Estate Investment

Follow my Facebook Page �www.facebook.com/realtorjonathanc
Follow my Instagram Page � www.instagram.com/realtorjonathan_

INFLATION AND REAL ESTATE: WHAT EVERY INVESTOR NEED TO KNOW


In most economies, inflation is a common occurrence. Indeed, it is frequently regarded as a precursor to the conclusion of an economic cycle. Naturally, a rapid increase in inflation can have a huge impact on a variety of industries and investment portfolios, and investors who don’t know how to navigate it will be wiped out.

⏺️But how does real estate investment fair in the face of inflation?
⏺️What happens to real estate when prices rise?
⏺️Is inflation beneficial to real estate?

Inflation has a number of real estate-related consequences, including higher mortgage rates, rising asset prices, depreciation of long-term debt, increased building costs, and so on.

Let’s look at how inflation affects real estate assets and mortgages, as well as how investors might position themselves in a high-inflation climate.

When interest rates rise, which usually happens during periods of economic expansion, different asset classes react differently. Rising interest rates erode bond principal, affect the value of stocks and other financial assets, and have an impact on debt interest payments.

Real estate investments, on the other hand, have the ability to perform well in a rising rate environment.
Income-generating real estate and multifamily, in particular, have historically — and as an investor and developer — demonstrated a stronger propensity to produce net income during expansionary periods than equities and other assets.

There are many more elements that influence real estate values in the actual economy. Interest rates is another key element for real estate prices to rise.

When borrowing rates are low, purchasing a property is more affordable, which increases demand. If the supply of homes remains constant but demand rises, housing prices will rise as well.

�What Exactly Is Inflation?
Before I can answer the aforementioned questions, i must first define inflation.

It is, in simple terms, an increase in the price of products and services over a period of time.

There are various reasons why a market experiences inflation.

⏺️Excess aggregate demand and cost-push variables are the most important.

A rise in demand for specific products and services is an excellent illustration of the former. In the case of the latter, increases in wages, production costs, and the cost of raw materials will almost always result in a high rate of inflation.

�Effects of Inflation on the real estate market

⏺️1. Mortgage rates may rise as a result of inflation
In general, interest rates rise in lockstep with inflation. When inflation rises, central banks often boost short-term interest rates to reduce inflationary pressures.

When interest rates are low, customers are more likely to borrow, resulting in more money to spend. This causes inflation to rise. Consumers will save more rather than spend as central banks boost interest rates to combat inflation because higher interest rates offer better returns. With reduced consumer spending, inflation is expected to fall.

Advisors and investors should be mindful, however, that as mortgage rates rise during inflationary periods, demand for real estate tends to fall as debt becomes more expensive. The consequent drop in demand may have a detrimental influence on asset prices.

⏺️2. Rents will skyrocket
Inflation raises everything prices, including rentals. Occupancy rates often climb when home production slows and demand for existing units rises. In such circumstances, landlords boost rents, resulting in increased revenue (and increases property value)

One of the most visible effects of inflation is a rise in rental rates. Because mortgages are so expensive, most people will choose to rent rather than own. Landlords will boost their rental rates as a result of the high demand for rental homes and the influx of tenants. In this economic situation, owning a rental property puts you in a great position because tenants are more ready to pay higher rents rather than take on an unaffordable mortgage.

⏺️3. Inflation causes property values to rise
When the economy experiences a high rate of inflation, real estate values will rise as well. The reasons behind this are straightforward,because construction materials will be more expensive, developers will spend more on new properties. As a result, the cost of new real estate properties would inevitably rise.

Real estate prices rise in tandem with inflation as the cost of living rises. In general, when inflation rises, housing and other real estate asset prices rise with it. However, as mortgage rates rise, demand for real estate tends to fall since debt becomes more expensive.

⏺️4. Construction expenses rise as a result of inflation
Because inflation raises the cost of everything, the cost of construction materials will rise as well. There’s a lot that goes into real estate construction, and if inflation rises, all of those prices will rise as well.

Inflation raises wages, machinery costs, and construction supplies, as we all know. Developers and investors are also put in a situation where cost overruns are far more likely. If you planned a construction project several years ago in an inflationary climate, you’ll need to factor in the cost of all building materials and labor.

Because an inflationary environment usually results in increased rents and asset prices, real estate is thought to be a good inflation hedge. This is due to some major factors:

⏺️Rents rise in tandem with inflation.
⏺️Inflation raises the property’s value.
As the value of the debt declines, the debt on your asset devalues.
With that stated, high-inflation situations should be avoided by investors, partly because borrowing costs will rise, placing downward pressure on cash flows and real estate demand if you wish to sell. It also raises the expense of new real estate development.

�Bottom Line
Given the current economic position, inflation appears to be unavoidable. Understanding the reasons behind this occurrence is critical for successfully navigating a market that will soon be affected by rising costs.

In a turbulent global economy, privately owned, high-quality real estate with predictable income streams can be a good investment. Real estate has long been praised by advisors and investors for its capacity to weather inflationary pressures while keeping and growing value, in addition to its comparatively high yields, moderate volatility, and various portfolio diversification benefit.

For more updates relating to Real Estate/Landed Properties/Real Estate Investment

Follow my Facebook Page: @realtorjonathanc or www.facebook.com/realtorjonathanc

Follow my Instagram Page: @Realtorjonathan_ www.instagram.com/realtorjonathan_

DISCOVER HOW TO ACQUIRE AFFORDABLE APARTMENT IN NIGERIA EVEN IF YOU ARE NOT A LANDLORD OR LANDLADY

Here in this post I will show you how to secure an affordable apartment in Nigeria even If you are not a Landlord or Landlady or Landowner.
Make sure you read this till the end to get all the details.

Protect yourself!! fraudsters are on the pool exploiting the desperation of land and homes deals in Nigeria!
You like that house? You like that Land? It might be Scam.

WARNING! Do not secure any luxurious homes until you read this till the end.

My name is Nwaorgu Jonathan Chukwuebuka and I'm a seasoned Real Estate Consultant with Nigerian's Top Largest Real Estate Company Brand, PWAN HOMES (Property World African Network since 2012) whose primary objective is to make Home Ownership Dream a Stunning Reality with ease.

I am focused on redefining value in Real Estate industry by assisting and guiding smart investors desiring to become Home owners to acquire elegant genuine estate,lands and Housing properties in choice fast developing areas that caters to their needs and benefits with zero staring that gives them steady sustainable cash flow and also assist in taking advantage of the dynamic opportunities Real Estate offers, giving you sustainable returns for a steady long term income.

Today!!! I'm introducing a prestigious luxury apartments called PERIDOT MILLWALL. This is a 4 Bedroom+ BQ Terrace Duplexes of 20 units with Certificate of Occupancy as Title, located at the coastal road and orchid road in the lafiaji neighbourhood, Lekki,Eti Osa Lga, Off Lekki Epe Expressway. Plot size 300 Sqm | 600 sqm with Dry land as Topography.

At Periodot Millwall, we are delivering state of art luxury apartments with Ultramodern features that elevates the living such as Fitted kitchen, personalised parking space, large living area, Perimeter fencing,close proximity to the beach,close proximity to Lekki Epe express way.

PERIDOT MILLWALL offers more than just an apartment, it is part of an emerging community that has everything you need.
Furthermore, you live in an Oceanside environment. Among the things you can walk up to are the barreling waves of the ocean, the sound of seagulls, the cool breeze

A perfect home for comfort and style perfected with all amenities. Our apartment are built with quality material of the best standards and a solid finishing.

Enjoy amazing benefits such as
� minimal Maintenance
� less risk
� 24/7 Security Guard
� Gym
� Assured Capital Growth
� CCTV
� Smart Homes 24/7 WiFi
� High appreciation Rate
� Lucrative Rental Opportunities
� Hedge Against Inflation
� No need to worry about resale value

Enjoy exclusive bonuses such as:
�Free Site Inspection
�Free Consultation

PERIDOT MILLWALL, a luxury apartments of 20 units 4 Bedroom+ BQ Terrace duplexes.
3 units already sold out, 17 units left.
DON'T MISS OUT ON THIS OFFER!!!!

If you consider the cost of building materials as at February 2022 till today, you will realise there have been a rise in cost of building equipment. As at February Peridot Millwall was fixed at ₦55 million, however the price is still constant despite the rise in building equipments.

Don't miss this amazing offer!!!!

PERIDOT MILLWALL Construction is ongoing, delivery time is JUNE 2023.

HURRY NOW!!!
BOOK SITE INSPECTION! TODAY!

All payments will be made in PWAN MAX CONSTRUCTION AND BUILDING COMPANY [ Project Account]

There you have it!
You have the opportunity to secure a home!

PS: Do not miss this offer. 3 units of 4 Bedroom + BQ Terrace duplexes already sold out!! 17 units left.

BOOK SITE INSPECTION NOW ���
Realtor Jonathan
08070643060

How about you consider trading real estate!!
Invest in real business.. after a period of time..you will make your profit thus generate Passive Income..

You can choose to trade real estate by owning a land or not..


For more info contact me via my business line
@Realtor Jonathan 08070643060

HURRY �� NOW!! ENJOY 40% DISCOUNT ��
Contact us ���
ENJOY 40% DISCOUNT ��

OFFER LAST TILL 31ST JULY!!
✌️✌️✌️

HURRY NOW!!

GET YOUR F⚽⚽TBALL MATCH VIDEO EDITED! PROFESSIONALLY

ENJOY 40% DISCOUNT

OFFER LAST TILL 31ST JULY!!
✌️✌️✌️

Do you need money to
�Start a new business?
�Pay House Rent?
�Pay Your Kid's School Fees?
�Buy a Car?
�Travel Abroad?
�Live a good life?
�Have you you own lands and Home?

���

Do you need an extra source of income??

���

WORK WITH US and make more than N750,000 a month!!
��

What you stand to get!! �
�Free Trainings
�Free Consultation
�Marketing Support
�Personal Development

Join the next presentation by dropping your whatsapp contacts in the comment section

So what arr you talking about?

yuping:
I'm not talking about fraud here!

Has PWAN HOMES scammed you

amp01:


All this guys are fraud.
Person wet never earn 1,000,dey one teach you to earn 400,000.

Has PWAN HOMES fraud you?

yuping:
if I agree now Una go say make I bring 40k for starters, if I get 40k I no go good time place go relax?

Do you need money to
�Start a new business?
�Pay House Rent?
�Pay Your Kid's School Fees?
�Buy a Car?
�Travel Abroad?
�Live a good life?
�Have you you own lands and Home?

���

Do you need an extra source of income??

���

WORK WITH US and make more than N750,000 a month!!
��

What you stand to get!! �
�Free Trainings
�Free Consultation
�Marketing Support
�Personal Development

Join the next presentation by dropping your whatsapp contacts in the comment section

#HotDeal #ForSale

✔️Neatly used
✔️Tecno camon 18i
✔️4gb Ram
✔️5000mAh
✔️ ₦85K (Slightly Negotiable)
✔️ Location: Owerri

PWAN MAX ANNIVERSARY PROMO

BUY 2 PLOTS GET 1 PLOT FREE!!!!!!!

PWAN MAX is celebrating our 2nd anniversary with a special promo for our client.

You can buy 2 plots between Feb 14 to March 14 in our estates and get 1 PLOT FREE

This promo comes with an incredible payment plan. You can deposit 50k in any of the properties and spread your balance in 3- 6months to get your free plots.

For more enquiries and for site inspection!
Click on the link in my bio

Chukabiz:
I really want to learn and start that affiliate marketing but yet to find a good tutor.
99.9879654% of the guys on Nairaland claiming to make millions are only after your small money.
Especially those expertnair guys. They are all after commission from you buying the course.

Same here..
I really want to know how viable it is before I can invest

09032286812

Over 881k disbursed to members
Almost a million naira paid out in a single day
We’re the best by far Millions getting disbursed weekly is now a tradition on Chatmogul Changing lives for the better since 2019


If you’re tired of your financial situation, think chatmogul!
If you’re looking for sit at home and earn structure, chatmogul is the answer!


Looking for a means were you can enjoy the lifestyle you have always wanted, with chatmogul, it’s possible!


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vickybby:
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Pls this number is not on whatsapp

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If you’re a student, graduate, corper, unemployed, mother or father or even an employee and you’re already in search for a legit source where you can make extra income using just your smartphone, then this offer is for you! I want to show you a solution to your finanancial struggle.

What do you think of using just your data and smartphone to have fun and get paid weekly? You get paid by simply posting, commenting, liking or reacting to post, reading trending news, and a lot of fun filled activities. You can join us now and stand a chance to be among the two people to win a trip to Dubai this year. It’s never too late to join the chatmogul. Drop you whatsapp number on the comments section below to learn more


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