Housing makes up the biggest portion of the calculation for inflation, so if inflation is high, it means the cost of real estate is going up and usually your values are going up as well.
Are you wondering if you should move your funds over from the stock market to real estate investing?
I'm a big believer in real estate. I'll give you four reasons why:
- Better returns
- cash flow
- tax advantages
- Strong inflation hedge
In the 2008 recession, we saw stocks lose about half of their value.
Just imagine losing half of your invested dollars, and then, in the wake of Covid, we saw them go down by a third. With real estate investing, you have more consistency. At Nighthawk, we work in B-class housing, where rents go up by a little bit every single month.
This is not a discretionary asset class.
People need to have housing so there's greater consistency in the exact dynamics of the industry that you're investing in. For instance, someone might lose their job in a recession, but if they lose their job, they still need a place to live. They might downgrade from Class A to Class B or Class B to Class C, but there is always going to be a demand for housing. That is what makes it more resistant.
Want to Learn More?
If passive real estate investment sounds appealing and you're interested in what Nighthawk Equity has to offer, schedule a consultation with us: https://nighthawkequity.com/join
