Full disclaimer, like other real estate investors, I have no crystal ball. I can’t entirely agree that the sky is falling, but many feel Chicken Little’s sentiment due to the insane events we have lived through for the past year.
Yet now is one of the most exciting times in history to be in real estate.
While many are running around screaming, “The sky is falling,” you can be positioning yourself to make your first or next million through real estate. My purchasing has not slowed down in the past six months, and my only regret is that I wasn’t scooping up deals in April 2020 during the initial lockdown.
COVID-19 has rocked the world. While we have witnessed illnesses, deaths, and thousands of business closures, we have not seen an extreme shift in the booming real estate market other than the six weeks of decline for April thru May 2020.
So how do the next 18 months look based on the facts?
$3 trillion in printed money in 2020 equals inflation.
Never in history have we come close to the massive amounts of money being printed in 2020. While it has served to keep people afloat during the shutdown, there is no way it cannot have a massive effect on the economy.
With the amount of money printed, the dollar is becoming less and less valuable. The explanation is simple: “By printing extra notes, a government increases the total amount of money in circulation. If that amount does not follow an increase in production, there is more money to spend on the same amount of goods and services as before. Everything costs more; thus, our money is worth less,” explains PocketSense.
There is no way the government will quickly balance this debt, which means inflation will continue to rise. As the vaccine is only starting to get out to people, the dragging economy could continue for at least six to 12 more months. Many experts predict the economic slump may drag on for years.
Keep reading the article here:
Subscribe to the BiggerPockets Channel for the best real estate investing education online!
Become a member of the BiggerPockets community of real estate investors – https://www.biggerpockets.com