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Inflation and its Effect on Real Estate Investment

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Let me first define the concept of inflation as an increase in the demand and decrease of the supply, which causes an increment in the general level of prices, deterioration in the value of money, and thus defect in money transactions.

 

Amid such crisis, investors look for the safest way of investment to invest their money in order to maintain its value as a good that its value increase over time.

 

But the question remains about such safe investment: is it gold, deposit certificates, dollar, or real estate?

 

In the following few lines, Murabahat will discuss “Why does investment in real estate considered as a safe investment in such crisis, and how to get benefit from it?”

 

  1. Real estate and lands considered as valuable goods that its value increase over the time which means that the risk in such investment is really low,
  2. Real estate investment is considered as one of the most important investment tools and the most profitable one,
  3. Renting your property will get you great profit due to the increment in prices,
  4. Properties prices increase and decrease like any other good but what differentiate it is that the decrement in its prices isn’t as big as the other goods which means that its loss ratio is almost non-existent.

Conclusion

Inflation isn’t a weird thing as countries almost every 3 months published statistics that measure the inflation which means that it’s expected. Despite that we face a daily increment in the prices, but there’s still a chance to solve this inflation.
Investment in real estate is one of the solutions.