In Part 1 of this series on Real Estate and Inflation, we discussed how monetary inflation creates price inflation which affects materials costs, creates a shift into rentals and a surge in foreclosures. But on the flip side, being a commodity itself, home ownership can provide protection against inflation and through the use of a mortgage allows you to pay off an appreciating asset with depreciating dollars. This time we will look at a few more effects of Inflation on the average home buyer. In a period of high inflation, a dollar's value decreases rapidly. On average, a 2 percent inflation rate means that what costs $1 in 2017 would cost roughly $1.02 in 2018. Although inflation is … [Read more...]