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 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!!
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.
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.
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?
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
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. RU-vid 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 😐
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
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, I'm new to investing and I'm going after it right now heavily. I appreciate your wisdom and your think tank that you and your team have created. I can't express enough how valuable and thankful I am for your time.
Hey Ken, I've read rich dad poor dad, why the rich get richer and a few books on economics. Its amazing how well you were able to explain things from those books without making it boring. I was definitely going back to paragraphs and rereading them. Its just bonkers how well you explained everything. Keep making such content and educating people. Thank you so much.
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.
@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!
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)
@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.
There is a fourth factor that is very important as well. Velocity. M1, M2, M3 alone don't create inflation. Those have to be moving throughout the economy. One dollar sitting in your bank account does not create inflation. Neither does 2 or 3 or three trillion dollars. That money has to be out buying things. That's money velocity. So keep an eye on velosoty also and you gauge future inflation.
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.
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?
Ken, great video and simple to follow. I agree wholeheartedly. Thanks for sharing. You should consider doing a video on 100% depreciation and cost seg. Have a great day and stay safe out there!
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.
Im not an expert on real estate but i would like to ask a question about savings: How , in order to avoid be a loser by saving your money, if you have money already saved at the bank , how to know where and to invest it safely to get the most out of it in the future?
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 !
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....
You are a doll!!! You have made me understand so much between you and Robert love Roberts bluntness by the way if only I knew you 20 years ago my life would probably be totally different but thank you for the great videos 👏👏
In 2021, the inflation is forecast at slightly above 2 percent. Basically it means "controllable inflation". If the U.S. economy rebounds in next two to three years, the increase in inflation might be healthy for the country.
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
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?
You are forgetting how the CPI calculation standards was changed decades ago which kept the inflation rate artificially low. Its all manipulated. The purchasing power from the 1970's to 2020 went from 1 dollar down to 8 or 9 cents. That's my two cents.
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.
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
Great video Ken, thank you for all the information. Love the electrical white board, where did you get it at? Its a great tool to help explain things to my team.
Do not invest all your savings at this time, especially if you are working for someone who might go under or if your business could have trouble in the coming years. Keep a year of savings based on how much it costs you to live when you've cut costs to the max.
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?
