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.
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.
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