Inflation is Coming! Inflation is Coming!

All the signs are there that we will at some time in the near future experience major inflation. One of the last economic signs that we are going into inflation is the real estate market. The real estate market has been on a downturn since the bubble years of the the 2000-2006 period. Now we are seeing the real estate market hitting bottom, and in some areas we are seeing up swings. With the Fed. throw all this cheap money out there, eventually we are going to see the 1970's style inflation back.

How do you hedge against inflation? You buy commodities, gold, silver and yes, the last component, real estate. As many of you are aware, rents have been increasing on average abour 4.7% last year. With cheap FHA financing out there, we are already seeing an increase in housing here is San Luis Obispo County in the lower end homes. This will eventually trickle up to the moderate priced ones.

So get ready! When the inflation sunami hits! Don't be on the beach!