Understanding How “Sticky” Real Estate Investments Hedge Against Inflation

Rising Consumer Price Index and Interest Rates

The combination of the Covid pandemic, the war between Russia and Ukraine, and supply chain shortages across the globe have the world reeling under rising inflation.

Defining “Sticky” Assets in Real Estate

“Sticky” real estate is the idea that the revenue stream of the property is consistent over the long term. Commercial real estate is valued by tenants and whether or not it is a piece of income-producing real estate.

So how does a real estate investment hedge against inflation?

Real estate investing in sticky asset classes can hedge against inflation and bolster your portfolio against a future that may see interest rates rise again.

Real Estate Investment Trusts or Real Estate Syndications?

Real estate investment trusts work more like the stock market and may see fluctuations similar to stock prices. Real estate syndications, on the other hand, usually require more up-front investments but often provide a more stable source of passive income. Alternative investments like real estate syndications can offer you access to “sticky” assets that can hedge against inflation, even if you don’t have millions of dollars to buy commercial real estate on your own.

Face the Future with Confidence through Strong Investments

You can’t control the Federal Reserve or overall consumer prices. What you can do is pursue an investment portfolio that contains commercial property with solid infrastructure, long-term tenants, and the potential for raising rents.

Want to learn more about Investing with Lisa?

If you are interested in learning more about passively investing in apartment buildings, click here https://lisahylton.com/invest/ to sign up to learn more about upcoming opportunities.

About the Author

Lisa is the CEO of Lisahylton.com, a real estate company that helps entrepreneurs invest in tax-efficient real estate investments. At Lisahylton.com, Lisa and her team focus on buying apartments with investors and shares the profits. This strategy enables her investors to build wealth and passive income through investing in conservative, high-quality multifamily assets.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store