No, I am not referring ad nauseam to that group of ultra-wealthy peeps we follow so closely. I am speaking to the percentage of interest the average savings account delivers today. It's low. Very low. And if you factor in that inflation is running around 2%, a $10,000 savings deposit earning 0.6% is actually DECREASING in value by $140 per year.
With this figure in mind, owning hard assets right now is something many wise investors are focused on. Many assets appear over-valued these days. But there is one asset - your home - that is not just an investment but also an ESSENTIAL NEED. We all need shelter. And if you can combine an asset/investment with an essential need - one that has historically weathered inflationary times well - owning a home right now in a low-interest-rate environment might make more sense than ever.
Instead of buyers looking to make fortunes via their homes, maybe they'd be wiser focusing more on weathering inflation, preserving capital, capitalizing on tax incentives, historically low interest rates, and long-term shelter needs....not to mention forced long-term savings that don't erode over time.
SOURCE: Compass Catch