How To Use Inflation To Your Advantage – It Isn’t The Villain You Think It Is
Written by: Lorraine
How to Get Your Tenant to Repay Your Loan Do you know how to use inflation to your advantage? Did you know that inflation can be your best friend? Did you know that by making savvy investment decisions your tenant could be paying your mortgage amount for you somewhere down the line? It is thanks […]
Published onJune 29, 2023
Last update: ago
Est. Reading: 3 minutes
How to Get Your Tenant to Repay Your Loan
Do you know how to use inflation to your advantage? Did you know that inflation can be your best friend? Did you know that by making savvy investment decisions your tenant could be paying your mortgage amount for you somewhere down the line? It is thanks to that great and stupendous gift called the 30-year fixed-rate loan that this is possible. If you’ve decided that you want to create wealth for yourself and your family, investing in real estate using this wonderful gift is the way to go.
Why invest in real estate and how to use inflation to your advantage?
At ICG Real Estate we have helped countless people utilize this gift to secure their financial futures. It is something we call the Remote Control Retirement Riches formula. It is not a get-rich-quick formula. It is a sound, tried, and tested methodology that helps you create genuine wealth for yourself. It stands you in good stead and, at the very least, provides you with a great income source in the later years of your life.
Why inflation and debt are your friends.
Inflation and debt are your best friends. Ultrarich individuals have used them to create immense wealth. – Adiel Gorel
So how to use inflation to your advantage? Back to my favorite topic – the 30-year fixed-rate loan. This is a great gift that Americans get, a loan with a repayment amount that remains the same over a three-decade period. Imagine how prices change over such a long duration. In 30 years, you're going to be paying a whole lot more than what you pay today for your groceries, the services you use, and the furniture you buy. What you, however, will not pay more of, is your loan repayment amount.
So over time, that loan amount is going to continue to shrink further making it easier to make those payments. As inflation rises, it erodes the value of your loan. This is to your benefit because as inflation rises, your investment remains valuable and you're building your wealth month on month, year on year. This is how to use inflation to your advantage.
It is almost like inflation is conspiring to make you wealthy, and that is why it can be like a best friend to you. As I like to explain to people, some years down the road, you're going to find it as easy to pay for as, say, a fancy dinner somewhere.
How your tenant actually ends up making your loan payments.
When you choose your investments well, your investments will soon start to appreciate. Real estate prices will rise, making your investment more valuable. Rents in the area will also rise giving you better returns on your investment, and soon you can break even. At one point rents could be high enough that you're not even repaying your loan. Your tenant is doing this for you!
I once again reiterate what a wonderful gift the 30-year fixed-rate loan is, and how that is central to actually creating wealth for yourself. It is this gift that makes inflation your friend and teaches you how to use inflation to your advantage. It gives you the chance to actually make a real difference to your financial future. It is this gift that gives people a chance to improve their finances in ways that they perhaps could not even by working hard their whole lives.
For more investing tips, catch my podcast. You can find out about our upcoming events here.
ICG uses single-family home investments, bought in advantageous locations and the best U.S. markets. We enable you to enjoy the clout that comes from purchasing a multitude of houses, even if you only buy one.
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