Most Americans are concerned about surging inflation right now. Making ends meet is challenging due to the growing cost of living, let alone investing and saving money. As the stock market takes a beating, many people are asking where their money might find more stability as inflation rises and a recession comes.

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Real estate has historically proven to be a reliable investment throughout inflation. Whether it’s a single-family house, a multifamily property, or even commercial real estate, several investors are turning to the asset class for its stability and tax advantages as stock markets remain volatile in the near future.

While considering real estate investment in the midst of inflation, Jacky He, CEO of real estate investment firm DMG Investments, explains, “In the rising interest rate environment we are currently in, people are expected to choose to rent instead of committing to purchasing a home. This provides multifamily housing investors with a constant supply of renters.”

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Housing and real estate will almost certainly always be in high demand. “Buy land, they don’t make it anymore,” as Mark Twain famously said. However, determining if real estate is a good fit for your portfolio is more complicated. One must also consider the requirement for liquidity, their tax strategy, and the time they can dedicate to monitoring a real estate investment, which is more exhaustive than monitoring a stock portfolio. However, when prices are soaring, real estate can be a good place to put your money.

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Regardless of economic situations, there will always be a need for rental houses. This has been seen among younger generations, who rent rather than purchase for a variety of reasons, including soaring student loans and stressful job markets.

Selecting areas where there is a significant demand for rentals will guarantee a profitable investment.

Another advantage of real estate investment is that you may add value to your investment, increasing its worth. It may also result in an increase in the revenue generated by your asset. For example, you may renovate your homes and demand more rentals as a result.

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You will have greater control over your investment when you invest in real estate than if you were to do so in another kind of asset. You have more options for who can rent your flats, for example. You can change the rental rate. Furthermore, there are no restrictions on selling your investment if you ever need to.

One particular advantage of multifamily real estate is the link of rental prices to inflation. Purchasing multifamily real estate is an excellent approach to hedge against inflation since it often appreciates in line with the CPI. As your rental revenue grows, so does the value of your property.

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Tax savings are another advantage of investing in multifamily real estate. Rental property owners, according to Fortune, are permitted to depreciate the value of their properties from their taxable income, which lowers the amount of taxes due on a portion of their rental income. When selling your home, there are additional chances to reduce your tax liability.