Anti-Inflation According to the most authoritative Casey-Shiller housing price index in the United States, among the 123 years from 1890 to 2013, 28 years fell and 95 years rose.

There have only been two consecutive declines for five years. The largest decline occurred in 2006-2011, when the real estate bubble burst and triggered a financial tsunami, with a cumulative decline of 33%.

There have been three consecutive 10-year cumulative increases of more than 100%. In the past 123 years, the annualized growth rate of U.S. housing prices was 3.07%, while during the same period, U.S. inflation was 2.82%.

House prices in the United States have risen at a rate of 0.25% higher than the inflation rate for more than 100 years. It is true that real estate is anti-inflation.

2Double-income real estate can be used to live in, and can also be rented out to earn rent, thereby obtaining double income.

From the first quarter of 1960 to the first quarter of 2013, the average rent-to-house price ratio in the United States was 4.98%.

Coupled with the 3.07% annual appreciation of house prices, the annual income is approximately 8.05%.

Currently, the interest rate on a 30-year fixed mortgage in the United States is around 4.49%.

Compared with low-cost U.S. mortgage loans, buying a house is indeed a good potential investment target.

3. Financial leverage: Financial leverage is like a double-edged sword. It can bring risks, but it can also bring benefits.

Taking real estate in the United States as an example, investors can borrow money from banks to buy properties. Assuming the down payment is 30%, then investors can control 100% of the assets with 30% of the principal in the short term.

Assume that the property price is 2 million, investors need to pay a down payment of 600,000, and the increase in property prices plus rental return rate is 8.05%, the annual income of 161,000 is 2 million × 8.05%, without considering the cost of mortgage and taxes.

, its annualized rate of return instantly increased to 26.83%!

161,000/600,000.

4. Increase credit. Purchasing real estate can increase the bank's credit score, thereby obtaining higher credit from the bank, and sometimes the interest rate will be more favorable.

We may own stocks, funds, gold, real estate and cars, and even some Victorian paintings, but when we go to apply for a loan, what assets will the bank like?

That’s right, it’s real estate!

It’s no wonder that most wealthy people’s favorite investment is real estate.

This is because with real estate, you seem to have the leverage to negotiate with banks and obtain low-interest loans.