It’s no secret that the financial landscape of the United States has changed in the last year. Inflation has been a buzzword for a couple of months, and we’re seeing it take effect in every aspect of our lives. We understand how inflation affects the country, from soaring grocery costs to fluctuating gas prices to astronomical plane ticket prices.
Interest rates increased in response to these rising prices, which put some capital markets in vulnerable positions. However, many property investors discovered this is the perfect time to turn to trust deed investments. Keep reading to understand why trust deed investing is smart in times of inflation.
What Is Inflation?
Inflation means the prices of services and goods rise over a certain period. Typically, inflation occurs when a country’s cost of living increases. However, it can be narrowly calculated by comparing the average prices of simple things like groceries, nail care, or lawn services. Inflation can also help us gauge the economy’s condition and predict a trend of how expensive or affordable something has become over time.
What Causes Inflation?
Too much demand with too little supply causes inflation. More precisely, it occurs when there’s an increase in the supply of money. Sometimes, prices can rise because of an increasing money supply. This is when the government prints more money and gives it to its citizens, decreasing the “value” of the money itself. The influx of cash in the economy increased the demand for goods and services, and some businesses couldn’t keep up.
Why You Should Invest During Inflation
What does inflation have to do with trust deeds, and why is trust deed investing smart in times of inflation? Inflation pushes up the prices of real estate and property, which means less risk on your end. If one of your properties forecloses, you likely won’t seize property worth less than the debt attached. The higher the interest rate, the higher the yield.
How Can We Help?
Don’t go through this journey alone! Whether you’re new or experienced to trust deed investing, it’s best to work with a great team of investors. Val-Chris Investments is a trust deed investment company that’s always ready to partner with our qualified investors and present many opportunities. Don’t hesitate to contact us if you’re interested in trust deed investing.