Cashflow | Inflation | Interest rates | Real Estate | Real Estate Investing | Realty | Rental Property
How inflation affects real interest rates and investment returns
Let’s discuss an interest rate of 3.4% and an inflation rate of 6.8% (according to BLS.gov/cpi for December of 2021) and look at the outcome. Inflation eats away at the future purchasing power of a dollar. In other words, it buys less because it has been devalued. The same $1M today, will not buy $1M…
