Blog with MAE Capital

In this volatile economy the smart investors have realized that the dollar is going to be further degraded due to politics and world economics.  This is why in the last few years you have seen Gold prices and silver prices hit record highs.  The reason is simple and two fold; first holding tangible assets such as gold and silver are hedges to inflation (traditionally); Second is the faith in the American political animal to manage income and expenses as a world power has diminished world wide thus devaluing the dollar.

So with that said, gold and silver prices are at the highest in history, so what is an asset that you can buy that will go up as inflation goes up.  Answer, Real Estate, it is very undervalued currently.  What other investment can you buy and rent out for a profit each month and realize appreciation?  Answer, none, so as you look to the smart investors with money in this economy they have started to purchase Real estate again.  Remember the smart ones get to the market first and the rest of the world follows. 

We are seeing properties in the "sweet spot" (where the average income can afford to buy and live) go with multiple offer today.  This will go on until the inventory of these homes get purchased by investors.  Then when the first time buyers get smart and enter they will be faced with a tight market where they will be competing against cash offers.  Look for properties at the high end of the market that have been remodeled by investors and not only will you get a great deal on Real estate today your home will be the first to appreciate as it will have already been renovated at the cost of others.

As always I welcome comments.