@Ken McElroy I recently became a subscriber after a friend shared one of your videos. I've been wondering about inflation and its timing especially as it relates to price of investments. Thank you for addressing inflation and helping us plan for it!
Great content. Do you think houses price will significantly drop by the end of the yr or it's wise to buy now since some experts predicts a non significant impact as compared to 2008 housing crash? Thanks
Kim Prince. According to several economists George Gammon, Mike Maloney, Peter Schiff, we will see a drop in real estate prices within 12-24 months. Depending on your location, places like NYC May see 40% drops(according to George Gammon. Keep in mind that baby boomers are retiring in the masses within this decade and this will suppress the housing market even more. Factor in 33 mil unemployed and mass mortgage defaults and it seems the perfect storm is brewing. Don’t listen to those on CNBC or on mainstream media. TH-cam guys like George Gammon who speaks economics backed by facts. Housing prices will definitely crash, guaranteed. No economy= No jobs= no income= no one buying houses unless prices are reduced.
My two cents...I've been watching the markets ever since 2007. Active investor back in 2008, 2009, and 2010. If you're speaking of a personal home it depends at the end of the day if you're planning on staying in the home for quite a while then it doesn't matter. However, if you would like to have some equity for a bit of time that don't buy right now unless is 60 cents on the dollar. I think we have about a year before most of the more "sound" markets get crushed but this next downturn will be much worse than what we experienced in 08'. Personally, I would sit on as much cash as possible, and wait to buy. If you own your home pending your financial situation. I would sell NOW and rent. Wait about 2-3 years maybe 4. But I believe right now is an amazing time to do some really quick deals before the house of cards falls...pending your market. Some people are freaking out and heading for the hills and are VERY Motivated.
@@CV-nn7jj what's your opinion? If the dollar continues to decrease in value than home will still cost more money because the u.s dollar just doesn't have the buying power it once did. What do you think
@@Bdpjev My advice is buy property. You have to define property for yourself. Our system is base on property rights. No property =no rights. Property value will always grow.
@@CV-nn7jj am liking your logic is very sound. If the economy and job market doesn't recover soon,the house market will head to the dumps. Give it 12 months 😐
yes it is in Malaysia too, I receive gov stimulus package, and i put it all in silver as my stater pack. there many offering 0% interest rate, rent first buy later, is looking like bait to me now, people are jobless here, how are they going to pay the rent if i bought, so this is not a good time to buy, properties price are still height.
Same thing happening in America. Real estate prices too high, extremely high unemployment. Who is going to pay rent for the overpriced property you buy? Nobody. Real estate will crash; it just takes a while for it to catch up with the reality.
Sir thks ...one think is clear to all of us..around world one common thing is going is that all govt &finical companies are trying to boost economy..its time marry go around is going on...we all have to give some time it will all return it again .....best reason is to win keeping our health good...because health gives us good wealth...try to invest out time doing to our favourite acitvitys...so mind cannot go for depression..always think its is positive ..try to do side bussiness any it will support ur main bussiness...i have learnt pass 14.yrs in working in construction co..&best +5yrs in my own realestate bussiness....onevthink i got in it my bussiness is hope of new rising day lots of hapoiness &success to our goal..i truly fan of watching all positive youtube videos....i always try to get it one think...i will win +always be winner for ever &ever ...my dream my goal to support my all realestate families members +creat lots of oppurnites for each &everyone with smileing face....
We are in deflation, wages will go down for people who have jobs, a great deleveraging, less people with jobs, and states out of money will bring a end to the single mother household, where the government encourages breakups of the family, multiple generations will start living in one house just like the majority of the world, baby boomers with multiple houses will be turning 80 and 90 soon, rents will fall, used car prices will fall in my opinion. If we look at places with hyperinflation like Venezuela, weimar Germany housing became almost worthless, food is the thing that hyper inflates. If your spending 70% of you income on food , where does that leave homes? Rent control will be the new thing for the next decade, property tax will keep skyrocketing.
Great analysis. To a landlord the property is only worth what the tenant can pay. Unemployed tenants or ones which have to decide between food will not pay the rent, however hopeful the landlord is. Rent control always comes from public pressure. The reset has to happen. If government had allowed interest rates to rise in each time of trouble and not bailed out major institutions there might have been a possibility to avert the pain now. The type of real estate that will certainly hold its value and become more valuable is productive farm land. At least then there is the potential for food, water, the basics of cloth, natural medicines and fuel that are going to be the goods most sought after in hyperinflation.
Believe it or not, housing in Venezuela did not become worthless because having mortgage debt with a fixed interest rate that loses it’s value rapidly will always be attractive, so as long as the banks keep approving loans the demand could be infinite. That’s what happened in Venezuela at least for 15 years so from my experience I would recommend to buy right now.
@@fernandmontilla What happened to employment and cost of essential goods? Can you own farm land, does it get nationalized/stolen by the government or does the government take farmed goods in exchange for government notes/special IOU's?
@Pinky Money printed out of thin air with reduced production equals inflation. The big stock market gains is also inflation but people think it's making them rich.
Adam Ovard definitely, it’s historically under priced. The silver to gold ration is usually 20-50 to 1 it’s been trading 100-130 to 1 my advice don’t buy fancy or old coins. Just get bullion rounds/bars
Ladies and gentlemen, if you are looking at real state as a channel to protect against inflation you are too late. RE prices have in fact been hyper-inflated because of many factors including--the fear of inflation.
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
Well I'm just your basic housewife and in my opinion which no one listens to is this. Food and consumer goods will continue to climb very high. The lower and middle class will be completely fleeced of their savings and equity in their homes.. Many will sell just to get out of debt. Many will foreclose on their homes and will end up with nothing and have to start over. Property taxes will increase to blood sucking heights. The wealthy will buy up all the real estate and the shift of money to the very wealthy will continually increase. The very wealthy will own most real estate, control the state and federal government and the lower and middle class will become basic slaves to the wealthy, just to maintain any resemblance of the life they once had. The American dream will only be for the very wealthy who then will control all media, dictate every move the poor man makes and call all the shots on our every day lives. Period. I'm no genius but I'm not stupid. Don't need anyone to tell me different.
Everything you say is on point except its all been that way already for more than a decade. Looks like Its gonna all turn to bear markets if it keeps going and it will because no one can stop the nwo.
I love that he is wearing shorts in this video, and while doing so he gives out some of the best financial advice out there. Keep em coming Ken, I learn a lot from you and Roibert!!
33M unemployed. Over 4M mortgages in forbearance. This is highly deflationary. Full employment and money being loaned out to anyone who can fog a mirror is how a reserve currency gets inflation. We'll probably get there, but it will take a while. Dont confuse supply chain disruption and adjustment, with inflation. With this much demand destruction, there will be fluctuations on the way to stabilization.
JazlDazl theres not gonna be any housing crisis, not like 2008, so long as they keep the forbearance program going long enough, which so far is a full year. His last video said you have to be in default to get one, that was incorrect. They are handing them out to ANYONE who JUST ask. Crazy huh but 100% true. As long as they cover us so no one can go into foreclosure untile things pick back up, then there will be no substantial market drops.
Is it worth buying a rental property right before hyperinflation if renters income isn't going up fast enough to pay that mortgage? Isn't a property owner forced to accept whatever the typical middle class income can afford?
Used to using flip charts eh? (finger lick to to back a screen) Hehe, some habits are hard to break, such as paying taxes but you guys rock with all your information, I am a dedicated student.
Inflation is here. Lumber prices have gone up 60 percent in the last few months. Houses are not going to get any cheaper. The government can't stop creating paper money. Housing and gold are your hedge
Any thoughts on how a disabled person that has a fixed income to get rental property? I have read many books, classes, etc. It seems to come back to income to get a loan to put on a property. When you might not be able to get a loan even with great credit. Wholesaling is not a real option but doing rentals are completely reasonable. I would appreciate any information/resources that can and would be helpful! Thanks again!
If we go into inflation, what will happen to real estate price (home) ? Are they going up or down? How is real estate play into rising rate environment as inflation rise ?
I agree with most of what you are saying. However, the value of your Real Estate is likely to go way down even with Inflation over the next 12-30 months. Thus, your assets will not be growing unless you plan to hold out for 15 years?
Inflation will drive rents up and the value of rental property is directly related to the gross rent. In short, Rental properties will go up in value. Problem is that the dollars are inflated.
Hi Ken, will rents keep up with inflation/hyperinflation or do you mostly make money on the fixed debt? How would you keep rents up with the pace of inflation if you have existing tenants there already?
You're asking the wrong question. you should be asking, what's the impact of real estate on inflation. increased money supply through bank printed money via credit exasperates inflation the same as when the FED prints money
Two years later and Kens stuff is aging really well unlike the other perma-bear doom and gloom youtubers, or the permabulls. Ken just delivering facts and analysis, thanks Ken!
I thinks he summed it up at the end. It sounds like it is better to take out a loan out of a bank for a property because the bank has the incentive to lend more. It does not make sense to me. Hope he clarifies.
Ken, You should also speak about how stagflation will effect real estate and if we go into a depression. What effect will it means on real estate. thanks ....
Ken was wondering because I did not hear you talk about taxes. But if the government in 2021/2022 increase taxes will this not remove the printed money? I know people will suffer slowly but normally as far as I know low interest rates and taxes balance the Fiat currency system? Low interest on one side and high taxes on the other side.
Nice video but I think it fell short on the financial impact on real estate going forward. It is my opinion you should have said in the years 2021 to 2022 we will sharp spikes in not only automobile prices but in real estate. And automobiles are bad debt while real estate holdings are good debt. Better to hunker in place now and build your war chest because there will be great real estate investment opportunities in two years. Ken, did I get that right?
Debt is not good, stay out of debt. We save $50k a year in cash after maxing out 401k's and TSP. Inflation may eat up much of cash saving but its guarangodamnteed to be there when the banks and wall street go bust. Diversify, equities, cash, gold and even crypto like bitcoin. Will not be surprised when cash becomes worthless. If you bought 20 bitcoin at $100 in 2013 hang on to it. Keep some gold bars, silver and cash in a home safe to last for awhile too. If you can pay off your mortgage do it, a good FICO score means youre just playing kissy face with the banks. Remain sovereign.
I like your presentation style. It's what I'd expect at a high cost investors seminar. It's practical knowledge. I'm subscribing. Honestly, however, I don't understand the greatest expansion idea unless it's in the services sector. If that's the case I think expansion is the wrong characterization at least as most Americans think of it. Please keep uploading these types a videos. They're a little technical but not off putting.
Thanks for the video Ken. Can we get some recommendations if we have money in savings? I dont know the stock market well and I dont have enough to buy homes yet. Do I put this money in Gold or Silver like your buddy Robert? And what percentage of my money should I switch over if that is the case?
oldeenglish64 To save you some time, Robert and many other economists recommends buying physical silver and gold(especially silver since it’s extremely undervalued right now). 10% of your net worth is recommended but I bought about 10k worth. I plan to buy more next year. Don’t buy stocks and bonds right now, we are in a hyper bubble scenario so everything is overvalued.
I was doing some research on what governments do in the event of a economic collapse revaluation of the dollar or currency and they said the first two things that occur after such an event the first will be A re-institution of the tax system and secondly revaluing debt paper to benefit the creditors what do you think of that possibility Ken? Also as the values of real estate increase ,what that means to the owners of real estate it may be a higher portfolio but clearly the cost of ownership through higher property taxes insurances and maintenance will be a negative result. We will just raise rent to pay the excess, as long as renters have the ability to pay. Like during the last Great Depression.
But if real estate is going up and people are losing there jobs and unable to pay rent. Who is going to buy high sky real estate with high maintenance fees. Aren’t you better off being liquid?
I'm a small real estate developer in hawaii. Just sold a big house I built that put me back in the black and in a strong cash position again. I have two more lots on this project (I do own outright). Given that inflation is coming, inventory is low but cost to build remains very high, Should I start building new houses or just sit back and see what this market looks like over the next year?
I live in an area that doesn't conform to normal real estate market predictions. Because we are on an island, the weather is ideal year round and our investors come from every corner of the world. We have a high demand for both land and homes. Often what occurs in the market on the mainland doesn't happen here. If it does, its a year or two later. What should we expect? Currently land & houses are selling well & inventory is dropping. No one wants to sell now. (Except vacation rentals maybe)
Rents, and hotel rental income have gone down which should negatively impact prices. Low interest rates and QE should make real estate go up. I think it will be a wash.
Low interest allows pepole who can't afford to be there compete against the rich, then in turn drive up the price more , low interest actually makes the real estate market worse !
Thanks Ken - appreciate the video. If interest rates are zero or negative and the economy is trying to regain its footing, when do you see inflation coming in?
Ken Also greatly appreciate your insights. I agree that cash savings will loose to inflation, but you also mentioned cash during Covid-19 will be great. So should I invest( even I know price will go down) or save then? BTW, inflation rate sometimes is deceiving if government doesn’t include everything. Thanks always Kevin from Japan
I had to watch this twice because I didn’t understand how inflation effects real estate. I think I get it now. With inflation looming in the next few years. Now is the time to finance some rental real estate at a good fixed rate. A dollar buys more right now than it will in a few years. Buy now and lock in a good rate.
terrible idea to own rentals during hyperinflation and high unemployment. You won't be able to collect rent and housing prices will fall due to foreclosures. Banks also pay high interest rate during hyperinflation. Learn from Venezuela where their banks were paying 80% APR. Yes, 80% interest rate.
i love everyone's views on whats going to happen to the economy but i cant see how logically this could all play out housing goes up renters are already having a hard time to pay their rent even with stimulus in certain areas . If inflation rises, plus threw the change of hands of securities, both mortgages and rents will go up.if renters are struggling to rent u will have people defaulting even in a inflationary market the cost of living cant keep going up and up with out people being over leveraged and defaulting meaning housing prices will more then likely become stagnant while inflation is happening so weather we see deflation or inflation the housing bubble simply is going to burst. Interest rates would have to go in to the negative as they continue to print in order to keep the asset prices up at that point inflation will become so rapid the central banks will screw up with out a doubt threw out history governments always do and we hit hyper inflation and the cost of living goes sky high leading to defaults. I am not an economist but i don't get how people think asset prices can climb for ever unless the entire world will be owned buy 1 percent and the rest will be nothing more then tenants you will almost certainly see inequality and civil war break out on a level the world has never seen if that happens. The last thing that will be hit buy inflation is job wages as a result we just aren t going to see renters and new home buyers able to keep up as money is devalued and they are the ones driving the market up
What happens to over inflated property prices when interest rates rocket to control inflation?
Love how he licked his finger to turn the page on a touch screen hahaha. I'd do same
@Ken McElroy I recently became a subscriber after a friend shared one of your videos. I've been wondering about inflation and its timing especially as it relates to price of investments. Thank you for addressing inflation and helping us plan for it!
This information is gold. Thanks, Ken!
Thank you Ken! We need this information.
Ken thank you for this platform. Just finding you and finishing the video where Rich store their wealth. The 3 level. A student ready to learn!
Great content. Do you think houses price will significantly drop by the end of the yr or it's wise to buy now since some experts predicts a non significant impact as compared to 2008 housing crash? Thanks
Kim Prince. According to several economists George Gammon, Mike Maloney, Peter Schiff, we will see a drop in real estate prices within 12-24 months. Depending on your location, places like NYC May see 40% drops(according to George Gammon. Keep in mind that baby boomers are retiring in the masses within this decade and this will suppress the housing market even more. Factor in 33 mil unemployed and mass mortgage defaults and it seems the perfect storm is brewing. Don’t listen to those on CNBC or on mainstream media. TH-cam guys like George Gammon who speaks economics backed by facts. Housing prices will definitely crash, guaranteed. No economy= No jobs= no income= no one buying houses unless prices are reduced.
My two cents...I've been watching the markets ever since 2007. Active investor back in 2008, 2009, and 2010. If you're speaking of a personal home it depends at the end of the day if you're planning on staying in the home for quite a while then it doesn't matter. However, if you would like to have some equity for a bit of time that don't buy right now unless is 60 cents on the dollar. I think we have about a year before most of the more "sound" markets get crushed but this next downturn will be much worse than what we experienced in 08'. Personally, I would sit on as much cash as possible, and wait to buy. If you own your home pending your financial situation. I would sell NOW and rent. Wait about 2-3 years maybe 4. But I believe right now is an amazing time to do some really quick deals before the house of cards falls...pending your market. Some people are freaking out and heading for the hills and are VERY Motivated.
@@CV-nn7jj what's your opinion? If the dollar continues to decrease in value than home will still cost more money because the u.s dollar just doesn't have the buying power it once did. What do you think
@@Bdpjev My advice is buy property. You have to define property for yourself. Our system is base on property rights. No property =no rights. Property value will always grow.
@@CV-nn7jj am liking your logic is very sound. If the economy and job market doesn't recover soon,the house market will head to the dumps. Give it 12 months 😐
Ken you are killing it with these videos man! Thank you!
yes it is in Malaysia too, I receive gov stimulus package, and i put it all in silver as my stater pack. there many offering 0% interest rate, rent first buy later, is looking like bait to me now, people are jobless here, how are they going to pay the rent if i bought, so this is not a good time to buy, properties price are still height.
Same thing happening in America. Real estate prices too high, extremely high unemployment. Who is going to pay rent for the overpriced property you buy? Nobody. Real estate will crash; it just takes a while for it to catch up with the reality.
Sir thks ...one think is clear to all of us..around world one common thing is going is that all govt &finical companies are trying to boost economy..its time marry go around is going on...we all have to give some time it will all return it again .....best reason is to win keeping our health good...because health gives us good wealth...try to invest out time doing to our favourite acitvitys...so mind cannot go for depression..always think its is positive ..try to do side bussiness any it will support ur main bussiness...i have learnt pass 14.yrs in working in construction co..&best +5yrs in my own realestate bussiness....onevthink i got in it my bussiness is hope of new rising day lots of hapoiness &success to our goal..i truly fan of watching all positive youtube videos....i always try to get it one think...i will win +always be winner for ever &ever ...my dream my goal to support my all realestate families members +creat lots of oppurnites for each &everyone with smileing face....
We are in deflation, wages will go down for people who have jobs, a great deleveraging, less people with jobs, and states out of money will bring a end to the single mother household, where the government encourages breakups of the family, multiple generations will start living in one house just like the majority of the world, baby boomers with multiple houses will be turning 80 and 90 soon, rents will fall, used car prices will fall in my opinion. If we look at places with hyperinflation like Venezuela, weimar Germany housing became almost worthless, food is the thing that hyper inflates. If your spending 70% of you income on food , where does that leave homes? Rent control will be the new thing for the next decade, property tax will keep skyrocketing.
Great analysis. To a landlord the property is only worth what the tenant can pay. Unemployed tenants or ones which have to decide between food will not pay the rent, however hopeful the landlord is. Rent control always comes from public pressure. The reset has to happen.
If government had allowed interest rates to rise in each time of trouble and not bailed out major institutions there might have been a possibility to avert the pain now.
The type of real estate that will certainly hold its value and become more valuable is productive farm land. At least then there is the potential for food, water, the basics of cloth, natural medicines and fuel that are going to be the goods most sought after in hyperinflation.
The single mother household dissolved along time ago.
Believe it or not, housing in Venezuela did not become worthless because having mortgage debt with a fixed interest
rate that loses it’s value rapidly will always be attractive, so as long as the banks keep approving loans the demand could be infinite. That’s what happened in Venezuela at least for 15 years so from my experience I would recommend to buy right now.
@@fernandmontilla What happened to employment and cost of essential goods? Can you own farm land, does it get nationalized/stolen by the government or does the government take farmed goods in exchange for government notes/special IOU's?
@Will Buy It salaries wi rise also
So much wisdom!!!! Thank you Ken. Keep it up!!!!
Great class professor!
So where should we placed our emergency savings?
‘Inflation’ aka dollar devaluation
You don't think they can lower interest rates into the negative ?
Excellent Video!
Ken do you see a short term deflationary period in real estate?
Ken mention 3 types of inflation and real estate meets all 3. In other words guaranteed higher real estate prices!
You can lower the brightness on the Flipboard to make the type pop better. Otherwise solid.
Great video my friend, I had to watch it twice..
Thanks for the solid info.
Inflation already sets in. Groceries are more expensive now.
inflation happens when there’s an over demand of a certain good. food prices are getting inflated.
Don’t call me name. I double if you buy enough groceries to know the price difference.
That is called demand pull inflation
@Pinky Money printed out of thin air with reduced production equals inflation. The big stock market gains is also inflation but people think it's making them rich.
@@razerfish I get the first part of your statement, but not the second part. Please explain in simple terms. Thanks.
We will be experiencing inflation and deflation at the same time. Yes, wrap your brain round that. It will all end up in high/hyper inflation.
inflation in real estate, gold, stocks. Deflation in ? tech... you got more examples's ....
I don't have a lot of money. But I can buy silver. Would you invest in silver?
Adam Ovard definitely, it’s historically under priced. The silver to gold ration is usually 20-50 to 1 it’s been trading 100-130 to 1 my advice don’t buy fancy or old coins. Just get bullion rounds/bars
I'd like the third one
Great explanations, thanks!
We love Mike!!
Ladies and gentlemen, if you are looking at real state as a channel to protect against inflation you are too late. RE prices have in fact been hyper-inflated because of many factors including--the fear of inflation.
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
Thank you for the great informations!
I am interested to know about that Board ? what kind of Board was that and where can we buy it ?
I don't think there will be inflation all across the board as long as USD is the world's reserve currency.
Hi, what about now?
Rates can go negative!
Great prediction!
Demand and purchasing power is already becoming less after this inflation it will be face more of the downside
How can someone dislike the video! Damn such valuable info
where did he talk about real estate as the title?
20:13
Basic economics. Inflation = expansion of money supply
Well I'm just your basic housewife and in my opinion which no one listens to is this. Food and consumer goods will continue to climb very high. The lower and middle class will be completely fleeced of their savings and equity in their homes.. Many will sell just to get out of debt. Many will foreclose on their homes and will end up with nothing and have to start over. Property taxes will increase to blood sucking heights. The wealthy will buy up all the real estate and the shift of money to the very wealthy will continually increase. The very wealthy will own most real estate, control the state and federal government and the lower and middle class will become basic slaves to the wealthy, just to maintain any resemblance of the life they once had. The American dream will only be for the very wealthy who then will control all media, dictate every move the poor man makes and call all the shots on our every day lives. Period. I'm no genius but I'm not stupid. Don't need anyone to tell me different.
Everything you say is on point except its all been that way already for more than a decade. Looks like Its gonna all turn to bear markets if it keeps going and it will because no one can stop the nwo.
We always listen to "basic housewives" - usually the smartest in the group.
OK Patti...we all know this. Then besides learning 'survival skills", staying healthy and believing in Jesus, what else can/should we do?
I love that he is wearing shorts in this video, and while doing so he gives out some of the best financial advice out there. Keep em coming Ken, I learn a lot from you and Roibert!!
33M unemployed. Over 4M mortgages in forbearance. This is highly deflationary. Full employment and money being loaned out to anyone who can fog a mirror is how a reserve currency gets inflation. We'll probably get there, but it will take a while. Dont confuse supply chain disruption and adjustment, with inflation. With this much demand destruction, there will be fluctuations on the way to stabilization.
Expect the unexpected...volatility will prevail as things shake
JazlDazl theres not gonna be any housing crisis, not like 2008, so long as they keep the forbearance program going long enough, which so far is a full year. His last video said you have to be in default to get one, that was incorrect. They are handing them out to ANYONE who JUST ask. Crazy huh but 100% true. As long as they cover us so no one can go into foreclosure untile things pick back up, then there will be no substantial market drops.
Hey man grate video what type of board did you used in your video and where can I buy one..
Is it worth buying a rental property right before hyperinflation if renters income isn't going up fast enough to pay that mortgage? Isn't a property owner forced to accept whatever the typical middle class income can afford?
Master the basics...Great video Ken. Thank you! BTW, what monitor are you using during these lectures?
Thanks again for sharing your knowledge!
Well done
Head to 17:55 if you want to skip the lesson on what inflation is
Used to using flip charts eh? (finger lick to to back a screen) Hehe, some habits are hard to break, such as paying taxes but you guys rock with all your information, I am a dedicated student.
Great information 👍
Inflation is here. Lumber prices have gone up 60 percent in the last few months. Houses are not going to get any cheaper. The government can't stop creating paper money. Housing and gold are your hedge
hard assets against inflation .
Concerning the inflation right now, you are good in predictions
House prices are going down in 2022 and beyond big time.
Houses will go down only to further cross the 2022 peak and rise higher
Ken, I made a similar argument in the 09 recession - they printed a lot of money QE1,2 etc but inflation never took off. Why is this time different?
Goverment will control everything and get what they want.
As Ken said, it’s different this time because the government can’t lower interest any further. “They’re out of tools in their tool belt.”
QE doesn’t inflate consumer pricing, only asset pricing. This is what happened in 2009 and I think will happen this time around as well.
Any thoughts on how a disabled person that has a fixed income to get rental property? I have read many books, classes, etc. It seems to come back to income to get a loan to put on a property. When you might not be able to get a loan even with great credit. Wholesaling is not a real option but doing rentals are completely reasonable. I would appreciate any information/resources that can and would be helpful! Thanks again!
Lark Kemper u can do owner financing or partner up with a friend. He will be on loan and u can be on deed.
Sell puppies for extra income. Find a small size breed that is rare or hard to find, and you will have a good income for years.
Ken, what can I do with any money I still have in a savings account?
I bought some.precious metals.
Buy something that will increase in value
Physical gold
Silver as it’s still under valued . One ounce coin
Just save it
Nice video, picked up a couple things, but y’all should try investing in bitcoin, it’s paying even more than real estate now.
If we go into inflation, what will happen to real estate price (home) ? Are they going up or down? How is real estate play into rising rate environment as inflation rise ?
good question, I think it will go up... as ken explains.
I agree with most of what you are saying. However, the value of your Real Estate is likely to go way down even with Inflation over the next 12-30 months. Thus, your assets will not be growing unless you plan to hold out for 15 years?
Inflation will drive rents up and the value of rental property is directly related to the gross rent. In short, Rental properties will go up in value. Problem is that the dollars are inflated.
Hi Ken, will rents keep up with inflation/hyperinflation or do you mostly make money on the fixed debt? How would you keep rents up with the pace of inflation if you have existing tenants there already?
Funny how McElroy, Kiyosaki, Gammon, Schiff, Maloney are all connected. I feel like my council is good lol
AJ Prasad meaning what? Do you agree with these guys or not?
so do you recommend buying real estate now?
You're asking the wrong question.
you should be asking, what's the impact of real estate on inflation.
increased money supply through bank printed money via credit exasperates inflation the same as when the FED prints money
Two years later and Kens stuff is aging really well unlike the other perma-bear doom and gloom youtubers, or the permabulls. Ken just delivering facts and analysis, thanks Ken!
Where is the impact of Inflation on Real Estate?? You just talked about Inflation here.
The inflation is within the real estate market itself driven by rich investors, it is a trading commodity of the rich
I thinks he summed it up at the end. It sounds like it is better to take out a loan out of a bank for a property because the bank has the incentive to lend more. It does not make sense to me. Hope he clarifies.
You talk about Mike Maloney but he thinks we will first have deflation and afterwards we will get hyperinflation
What kind of monitor you are using?
Since almost 10000 people moving to FL every day, what is your open ion about prices in houses in S Florida?! Are the prices will go down as well?
So what the solution?
I like the topic. I also like Bitcoin for this reason, only 21 million will ever be "printed."
I think you mean "mined". B-)
as long as the electrical grid survives...and all the comforts thereof.
rip off coin
Ken, You should also speak about how stagflation will effect real estate and if we go into a depression. What effect will it means on real estate. thanks ....
We had not even worked all the money increase from 2008 yet before covid money was added. We have one hell of a long way to go.
Ken was wondering because I did not hear you talk about taxes. But if the government in 2021/2022 increase taxes will this not remove the printed money? I know people will suffer slowly but normally as far as I know low interest rates and taxes balance the Fiat currency system? Low interest on one side and high taxes on the other side.
so, your previous video about house prices going down is wrong. it will go up with inflation.Or are you confused
Was wondering the same thing...
What are your thoughts on leveraging money you have saved in your bank account with gold or other precious metals?
Nice video but I think it fell short on the financial impact on real estate going forward. It is my opinion you should have said in the years 2021 to 2022 we will sharp spikes in not only automobile prices but in real estate. And automobiles are bad debt while real estate holdings are good debt. Better to hunker in place now and build your war chest because there will be great real estate investment opportunities in two years. Ken, did I get that right?
Good stuff. Where can I find that board/screen?
What controls to governments put in to slow/reduce inflation? Economics 101 me please.
Debt is not good, stay out of debt. We save $50k a year in cash after maxing out 401k's and TSP. Inflation may eat up much of cash saving but its guarangodamnteed to be there when the banks and wall street go bust. Diversify, equities, cash, gold and even crypto like bitcoin. Will not be surprised when cash becomes worthless. If you bought 20 bitcoin at $100 in 2013 hang on to it. Keep some gold bars, silver and cash in a home safe to last for awhile too. If you can pay off your mortgage do it, a good FICO score means youre just playing kissy face with the banks. Remain sovereign.
I like your presentation style. It's what I'd expect at a high cost investors seminar. It's practical knowledge. I'm subscribing. Honestly, however, I don't understand the greatest expansion idea unless it's in the services sector. If that's the case I think expansion is the wrong characterization at least as most Americans think of it.
Please keep uploading these types a videos. They're a little technical but not off putting.
Thanks for the video Ken. Can we get some recommendations if we have money in savings? I dont know the stock market well and I dont have enough to buy homes yet. Do I put this money in Gold or Silver like your buddy Robert? And what percentage of my money should I switch over if that is the case?
oldeenglish64 To save you some time, Robert and many other economists recommends buying physical silver and gold(especially silver since it’s extremely undervalued right now). 10% of your net worth is recommended but I bought about 10k worth. I plan to buy more next year. Don’t buy stocks and bonds right now, we are in a hyper bubble scenario so everything is overvalued.
I was doing some research on what governments do in the event of a economic collapse revaluation of the dollar or currency and they said the first two things that occur after such an event the first will be A re-institution of the tax system and secondly revaluing debt paper to benefit the creditors what do you think of that possibility Ken? Also as the values of real estate increase ,what that means to the owners of real estate it may be a higher portfolio but clearly the cost of ownership through higher property taxes insurances and maintenance will be a negative result. We will just raise rent to pay the excess, as long as renters have the ability to pay. Like during the last Great Depression.
Many people will leave California can't afford to live here. Chasing out the BLUE. Will CA become a RED state
Inflation is taxation...Is called, Keynesian BS economics...
Great explaining ! Thank You
But if real estate is going up and people are losing there jobs and unable to pay rent. Who is going to buy high sky real estate with high maintenance fees. Aren’t you better off being liquid?
Great stuff Ken,your simple way of teaching complicated economics works for me.
Ken, what is it that your using as a whiteboard in your videos? Also thanks for the info/insight.
New vehicle is literally the Worst Debt one can have. Depreicating asset. You end up with Negative Equity.
I'm a small real estate developer in hawaii. Just sold a big house I built that put me back in the black and in a strong cash position again. I have two more lots on this project (I do own outright). Given that inflation is coming, inventory is low but cost to build remains very high, Should I start building new houses or just sit back and see what this market looks like over the next year?
Wait and see, too many variables plus with stimulus and possible UBI let the dust settle
When these funds run out will the prices crash?
Therefore bringing opportunities for those that do have savings, or will they keep on rising ?
good debt is the debt created back in 2007 on housing market with a lot of cash flow and house price appreciation?
My man was here , long before ray Dalio lol
You are great! Jeff from Hong Kong
I live in an area that doesn't conform to normal real estate market predictions. Because we are on an island, the weather is ideal year round and our investors come from every corner of the world. We have a high demand for both land and homes. Often what occurs in the market on the mainland doesn't happen here. If it does, its a year or two later. What should we expect?
Currently land & houses are selling well & inventory is dropping. No one wants to sell now. (Except vacation rentals maybe)
Rents, and hotel rental income have gone down which should negatively impact prices. Low interest rates and QE should make real estate go up. I think it will be a wash.
Low interest allows pepole who can't afford to be there compete against the rich, then in turn drive up the price more , low interest actually makes the real estate market worse !
Thanks Ken - appreciate the video. If interest rates are zero or negative and the economy is trying to regain its footing, when do you see inflation coming in?
Right about NOW!
Necessary? Yeah right... More Kool Aid for Wall Street.....
Ken
Also greatly appreciate your insights.
I agree that cash savings will loose to inflation, but you also mentioned cash during Covid-19 will be great. So should I invest( even I know price will go down) or save then?
BTW, inflation rate sometimes is deceiving if government doesn’t include everything.
Thanks always
Kevin from Japan
I had to watch this twice because I didn’t understand how inflation effects real estate. I think I get it now. With inflation looming in the next few years. Now is the time to finance some rental real estate at a good fixed rate. A dollar buys more right now than it will in a few years. Buy now and lock in a good rate.
terrible idea to own rentals during hyperinflation and high unemployment. You won't be able to collect rent and housing prices will fall due to foreclosures. Banks also pay high interest rate during hyperinflation. Learn from Venezuela where their banks were paying 80% APR. Yes, 80% interest rate.
thx
Q:how will single fam rental units progress?
Don't kid you're self's FED COIN was completely spelled out in JACKSON HOLE where you all been????????
i love everyone's views on whats going to happen to the economy but i cant see how logically this could all play out housing goes up renters are already having a hard time to pay their rent even with stimulus in certain areas . If inflation rises, plus threw the change of hands of securities, both mortgages and rents will go up.if renters are struggling to rent u will have people defaulting even in a inflationary market the cost of living cant keep going up and up with out people being over leveraged and defaulting meaning housing prices will more then likely become stagnant while inflation is happening so weather we see deflation or inflation the housing bubble simply is going to burst. Interest rates would have to go in to the negative as they continue to print in order to keep the asset prices up at that point inflation will become so rapid the central banks will screw up with out a doubt threw out history governments always do and we hit hyper inflation and the cost of living goes sky high leading to defaults. I am not an economist but i don't get how people think asset prices can climb for ever unless the entire world will be owned buy 1 percent and the rest will be nothing more then tenants you will almost certainly see inequality and civil war break out on a level the world has never seen if that happens. The last thing that will be hit buy inflation is job wages as a result we just aren t going to see renters and new home buyers able to keep up as money is devalued and they are the ones driving the market up
Check out George Gammon. He is a lot like you.