On today’s show we are talking about when to take your chips off the table.
We have seen a significant run up in prices over the past two years. The upward pressure seemingly has no end in sight. Yet we know intuitively and as students of history that the party is likely to come to an end. Will there be better purchase prices in the future? It’s hard to say.
There is a school of thought that says you should never sell income generating real estate. In an inflationary environment, the properties will continue to appreciate and that value increase goes to the benefit of the equity holder.
Inflation always has the same effect. Inflation is the devaluation of the currency which wipes out the purchasing power of those on fixed income. It wipes out savings and it wipes out debt.
So if your cash is tied up in hard assets like real estate, which is protecting your money from inflation, why would you ever sell?
It turns out that there are a few reasons to sell selectively and we are going to look at those reasons on today’s show.
Host: Victor Menasce