What is the impact of inflation on real estate investment?

First of all, if inflation develops relatively moderately and softly lands, the development of the housing market will also maintain a healthy development trend, and it will maintain a relatively rapid upward trend. In this case, the demand for housing is as strong as ever, because investing in real estate, such as housing, is the traditional way to avoid losses from inflation.

However, if inflation develops in a vicious trend, i.e., the price level** is fast beyond what the economy and the market can tolerate, then people will expect hyperinflation, which will drive people to panic buying in the market, which in turn will push prices up faster and more difficult to control. The same is true for the housing market, which is bound to drive prices further due to the expectation of hyperinflation, as the demand for home buyers at the spot increases significantly. However, in this case, the expectation of rising housing prices has played a very large and devastating role, and the housing ** has been greatly overvalued in a short period of time, and the result is that a large number of bubbles have been created and the market has gradually lost its rationality.

At this point, we can see that if real estate is used as an investment, it is a good investment option under moderate inflation, which is similar to the current situation. However, if you encounter the consequences, then different periods of investment, the results are very different, must be "a few happy and a few sad", there are only two kinds of winners, just like **, either first-in-first-out, or backward!

For those with general income, who do not want to buy a house as an investor, if the inflation encountered is mild, and the income can be adjusted in the later stage (such as the policy income adjustment policy - "wage increase"), then the impact is not very large, and there is not much influence on the purchase of a house. Because, if you don't have enough money, whether you spend ordinary goods or buy a house, you have to spend it carefully. However, if you encounter hyperinflation, the people will be miserable, and their lives will have to be frugal!

Inflation is like the waves