Investment

Tenants, Stimulus, and Inflation

One of the worries landlords have these days, is that due to the Covid-19 situation, some tenants who may lose their job, will be unable to pay rents.

We have already addressed this (banks also allow leeway in mortgage payments etc.). However one point to consider is the following.

Unemployment benefits have been beefed up aggressively by the government. Once people who are unemployed or partially employed start getting their unemployment benefits (hopefully any minute now), and due to the enhanced payments, many people will earn about as much as they did while they were employed. Especially in the median income territory, where a lot of our tenants live.

This is something to consider, as the fears may have been over-blown. The unemployment payments are slated to be serious, and make a big difference. The idea behind them is that unemployed or partially employed people, could pay rent, buy food and gas etc.

On the issue of the government stimulus overall, the US government has just come out with a stimulus of over 2 trillion dollars. The Fed is also injecting liquidity into the financial markets, to the tune what appears to be 4 trillion dollars. The Government is already seeking a second stimulus (possibly having to do with massive infrastructure once people can be out and work), also seemingly to be about 2 trillion dollars.

With all these trillions of dollars essentially just being “printed by the government”, any economist will tell you that it will very likely create inflation. Possibly a strong one, once things are recovered.

At the same time, interest rates are close to being the lowest in history.

Once again, you can buy a single family home now, with a 30-year fixed rate loan at maybe the lowest rate ever. Then the home price is likely to go quite a bit higher just due to inflation (not even counting real appreciation). The mortgage does NOT go up with inflation, of course. Thus, as I always say, the 30-year loan gets eroded by inflation, and your equity gets built up faster thanks to inflation. Hard assets benefits during inflationary times, and are usually the safe havens investors go to. Single family homes are not only a hard asset , but an undeniable necessity (as opposed to office buildings, for example, since people can work from home. From HOME! Yes they need a home). Also, they are the asset class on which the fixed rate loan, which never changes with inflation for as long as 30 years, can be obtained.

When inflation hits hard, you will likely feel pretty smart having bought single family home investments, with fixed rate loans.

The Key to Wealth is also the Key to Health

The modern-day picture of a successful career includes financial stability and less sleep. To secure financial freedom, one must sacrifice family, personal comforts, and mental health to the widely-accepted stressors of today’s fast-paced workforce. Sadly, the exclusion of restful sleep in our image of success does more harm than good as sleep-deprivation may also decrease life expectancy by 15%, shaving off almost 12 years from the standard life expectancy of 78 years. As we become busier with our daily goals, sleep tends to be tossed to the wayside, yet what good is wealth without health?

As an international investment corporation, we acknowledge and encourage wellness as the primary investment our members should make, starting with sleep. Affecting 30% of the American population, sleep-loss impacts our financial stability as much as economic and political shifts by crumbling our bodies from inside out. Not only does it maximize stressors, but sleep-loss has been linked to several illnesses, including a 70% drop in natural killer cells – the same cells responsible for preventing cancer. With an overwhelming amount of research begging for better sleep patterns, healthy investment options are crucial more than ever.

Close Your Eyes and Open Your Mind to the Key to Wealth.

In the face of chaotic trading floors, fluctuating markets, and complicated investment plans, it may seem hard to equate financial investments with rest. Contrary to cultural norms, long-time real-estate investor, Adiel Gorel presents flexible financial plans built with manageable low-risk solutions, such as single-family rental homes and the amazing 30-year fixed rate loan, all more conducive to improved health and wealth with minimal:

Financial strain from rental upkeep
Time wasted in closely monitoring multiple assets in different locations
Sleep loss due to long work hours dedicated for far-off retirement plans
Created for inexperienced investors with little time to spare, investment strategies such as Remote-Controlled Retirement Riches can assist in creating prolific single-family home portfolios using multiple real-estate markets all with the support of tested strategies and experts.

Sleep-deprivation does not –and should not– equal success. Discover a new way to invest and rest with Adiel in our next broadcasting, August 10th, at 10:30 am on KQED Plus and create your wealth plan without sacrificing the core pillars of your health.

For more information on wellness and financial investments, visit our Membership Area to explore related podcasts and webinars designed to empower the decisions you make now and in the future.