Apr 15, 2007

Inflation

Inflation has both positive and negative effects on property owners' wealth. Price appreciation increases owners' equity, but inflation makes mortgage rates rise, which lowers demand for properties. Real Estate Center studies show that homes are good hedges against inflation.

Ali Anari

Inflation has both positive and negative effects on property owners’ wealth. Price appreciation increases owners’ equity, but inflation makes mortgage rates rise, which lowers demand for properties. Real Estate Center studies show that homes are good hedges against inflation.