When inflation outpaces your mortgage rate, you repay the loan in cheaper dollars. If inflation hits 9% and your rate is 7%, you're essentially paid to borrow. This mechanism has built wealth for real estate investors holding long-term debt.
But even if you agree with the CPI and think it's accurate, that's fine. You know, if, if inflation is 9% yet you can get a 30 year fixed rate mortgage at 7% right there, you're getting paid 2% to borrow because you're paying the money back in cheaper dollars and borrowing them at the value of today's dollars. So that's a beautiful, beautiful thing. But one of the things that happened to millions and millions of people throughout the last several decades is they actually implemented this inflation induced debt destruction strategy unknowingly, and it made a lot of people very, very wealthy.
Airbnb profit insights to get your business ready for sale! #podcast #realestate
What Most Successful STR Investors Are Focussed on Today: From a 300+ Investor Meetup
