Inflation's impact on real estate investments involves both challenges and opportunities. Here's a breakdown:

Impact on Real Estate Investments:

Depreciating Dollar Benefit When property appreciates and the dollar depreciates, investment growth can occur more quickly.

Advantage with Weaker Dollars Locking in a purchase for a specific amount allows you to pay it off with weaker, inflated dollars as time passes.

Faster Money Growth Higher inflation can lead to invested money growing more quickly, benefiting investors.

Consumer Squeeze Inflation can be bad for consumers whose income does not keep up, as they feel the squeeze between stagnant wages and rising costs.

Market Exclusion First-time and primary home buyers may be shut out of the market due to high interest rates or reluctance to lose low-interest loans.

Transaction Pool Reduction A smaller pool of transactioners can impact real estate agents, as their income relies on real estate transactions.

Key Opportunities:

Inflation Pivot Clients can understand inflation as a pivot point with profit potential.

Investor Focus Real estate agents should explore their investors for novel buying ideas and contacts that could be risk-averse.

Strategic Narrative Real estate agents should shape the narrative for their clients, helping them understand that inflation is just another pivot to make and that profit is still within reach.

Always Be Buying The approach should be to always be buying, focusing less on consuming and more on investing.