Why you should consider income-generating real estate as a hedge against inflation
In a recent post on Forbes.com, Patrick Grimes says, "The first and perhaps most important step toward inflation hedging is to buy your own home with a fixed-rate mortgage. If you are renting, you're not only building someone else's equity, you're also subjecting yourself to inflated yearly rent increases."
Consider commercial real estate, such as an office condominium.
While Grimes' quote focuses on home ownership, Cloudloft President, Alex Lestock, suggests this statement is equally true when it comes to purchasing commercial office real estate for small businesses.
Cloudloft customer Drew D. Van Brunt shares about his experience, "Looking back, I am thankful that our company made the decision to purchase two office condos from Cloudloft. I love the fact that we can own our office, and at the same time realize the benefits of owning an investment property next door. The process was simple and straightforward, the construction has proven to be high quality, and the economics of our decision made perfect sense. Our business is thriving, and I have peace of mind knowing that the return on our investment will be fantastic."
Grimes also stated, "While real estate investing is a proven wealth-building tool, most busy professionals don't have time to be DIY landlords dealing with tenants, toilets and trash. However, it is possible to achieve the same inflation-hedging advantages without the headaches by investing passively through private-equity-firm-sponsored real estate syndications."
Office ownership with fewer headaches.
Cloudloft's Owners Association provides services to alleviate headaches like:
Maintenance of the common areas such as driveways/parking, sprinklers, roofs, foundations, landscaping, and building exteriors.
It makes utility payments to the city for water, sewer, and trash/dumpster pickup.
And they cover insurance on the buildings (exterior) and liability coverage on the common areas around the property.
These services benefit office condo occupants, owner-occupants, and investors alike.
Leverage your retirement accounts for real estate investments to hedge against inflation.
Grimes suggests that this is an option worth considering, saying, "People who plan to fund their retirement with IRAs, 401(k) plans and savings accounts can be devastated by the long-term effects on inflation. One way to hedge against this is to invest in real estate."
Learn about our Cloudloft purchase process.
Visit https://www.cloudloft.net/our-process to find answers to common questions from buyers, like:
What are the current market rental rates, and how long is the average lease?
What costs are associated with owning an office condo?
Can I expect that this property will appreciate?
What do my monthly owners' association dues cover?
What are the steps to ownership?
Are you looking to make a smart business decision?
Consider if a Cloudloft investment is right for you as you look to protect yourself against inflation through smart investment opportunities.