BiggerPockets Real Estate Podcast The One True “Inflation-Proof” Investment (EVEN with Tariffs)
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Apr 9, 2025 Inflation can diminish your net worth if you're not careful. Discover the best investments to outpace inflation, as common hedges might actually harm your wealth. Real estate shines as a true inflation-proof asset, especially when paired with fixed-rate debt. The podcast also contrasts bonds and stocks, revealing why real estate often trumps them for long-term gains. Learn actionable strategies on where to place your cash for growth, even amid potential tariff hikes.
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Inflation Basics
- Inflation devalues the dollar, making your money buy less over time.
- Economists generally view modest inflation (1-2%) as healthy for stimulating spending and economic growth.
Think in Real Terms
- Evaluate investments in "real" terms, adjusted for inflation, to see their true impact on spending power.
- Consider both nominal (non-adjusted) and real (inflation-adjusted) returns for a complete picture.
Real Estate's Inflation Performance
- Real estate, especially rental properties, is a strong inflation hedge, often outperforming inflation.
- This is due to fixed-rate debt and rents that rise with inflation, increasing cash flow.