ReCasa Financial Blog

If you have bought anything lately, I am sure you have noticed the inflation.  One of the biggest talked about item is the price increase of eggs.  A box of Girl Scout cookies is even cheaper than a dozen eggs!

While inflation has started to slow down, it is still noticeable. Inflation can create a positive and negative impact on real estate investing.  The specific market and investment property type can affect if it is negative or positive.  Whether becoming a landlord or rehabbing a fix and flip property, there are ways to adjust to inflation and investing. 

With prices increasing, the best way to rehab a property is to purchase items for functionality and longevity over style.  This should decrease the turnover rate of renters and decrease the number of repairs need to be made over the years.  The way a real estate investor runs their investment business, will make or break it during this time of inflation. 

Inflation should not be worrisome for real estate investors, but it is important to understand it and prepare for it.  For owners of rental properties, inflation can be very beneficial.  It is known that landlords increase the price of rent when prices of goods and services also increase. 

Read more here - Homeowners Guide: How Does Inflation Affect the Housing Market? (msn.com)

Currently, mortgage rates are high which is usually a result of inflation.  Some homebuyers are taking advantage of the theory, “buy now, refinance later.”  On the other hand, there has been a decrease in mortgage applications. Good news is that rates are expected to fall this year. 

How is inflation influencing your real estate investing?