You Versus Pandemic Inflation (What to Consider)

[Kal Di]

The pandemic hurt many people economically. Know what to consider when it is you versus pandemic inflation.

[LevelUP]

Let's say whatever you make, you are able to save $10,000 cash per year which would be a lot for most people.
If we look at housing prices since 2019, some areas have gone up 50% due to the cost of materials and labor.

So that $200,000 brand new home now costs $300,000. This put these people 10yrs behind in savings for higher than the official number they give.

Whatever the number you use, 5% inflation or 10% inflation, doesn't reflect the true cost of inflation to some people.

Some Investments That Can Protect Against Inflation
1. Treasury Inflation-Protected Securities (TIPS)
2. Real Estate
3. Stocks
4. Commodities

Each investment has its own risks.

Some investments offer better cash flow than others.

EVERYONE WILL LAUGH AT YOU WHEN YOU BUY JUST AFTER A MARKET CRASH!  Lol.

[Kal Di]

Whatever the number you use, 5% inflation or 10% inflation, doesn't reflect the true cost of inflation to some people.

I agree! For some people, their lifestyle expenses may suffer from an average of more than 10% inflation. For others, it may be less than 10% inflation. As stated in the video, inflation may be a trivial issue for some people who earn six figure salaries.

[katsiki]

Let's say whatever you make, you are able to save $10,000 cash per year which would be a lot for most people.
If we look at housing prices since 2019, some areas have gone up 50% due to the cost of materials and labor.

So that $200,000 brand new home now costs $300,000. This put these people 10yrs behind in savings for higher than the official number they give.

Whatever the number you use, 5% inflation or 10% inflation, doesn't reflect the true cost of inflation to some people.

Some Investments That Can Protect Against Inflation
1. Treasury Inflation-Protected Securities (TIPS)
2. Real Estate
3. Stocks
4. Commodities

Each investment has its own risks.

Some investments offer better cash flow than others.

EVERYONE WILL LAUGH AT YOU WHEN YOU BUY JUST AFTER A MARKET CRASH!  Lol.

I-Bonds are paying around 7% right now as well.  Safe, federal (US) investment.

[Vle045]

We bought our house on March 6th 2020. About a week before the shut down. The supposed value of our house has increased about $80,000 to $100,000. Sometimes my husband is like… sell sell sell. But at the same time, we really like our house.

[LevelUP]

Nobody wants to sell their home because they would be buying a similar house at a similar price, so they would gain nothing.

The inventory of houses is tight now. When the shutdowns hit, unemployment was sky high, and builders didn't think anyone would want to buy a home, so they pulled back building homes. The opposite happened, and the market heated up towards the 2nd half of 2020. Course now we have lumber shortages and other shortages.

[rachel83az]

There is plenty of housing in the US. Unfortunately, a lot of that is overpriced luxury housing that is often left empty. It's used as an investment, not somewhere to live in. It costs the builder almost the same amount of money to build a luxury home as it does to build affordable housing, so of course they're going to try to increase their profits with luxury homes.

[Xyxyfendz]

There is plenty of housing in the US. Unfortunately, a lot of that is overpriced luxury housing that is often left empty. It's used as an investment, not somewhere to live in. It costs the builder almost the same amount of money to build a luxury home as it does to build affordable housing, so of course they're going to try to increase their profits with luxury homes.

I think it can be applied to any developed country, not only the US.

[ss20ts]

There is plenty of housing in the US. Unfortunately, a lot of that is overpriced luxury housing that is often left empty. It's used as an investment, not somewhere to live in. It costs the builder almost the same amount of money to build a luxury home as it does to build affordable housing, so of course they're going to try to increase their profits with luxury homes.

Very little luxury housing where I live. What there is is on a lake. It's not empty. It's used year round. Some are rentals. Some are lived in year round. Some are summer homes. The rest of the communities have practically nothing for sale. It's been this way for years. It's very difficult to find housing where I live. There is actually a shortage of housing in this area. Many areas have a shortage of housing. Fewer apartments every day now because of government mandates. Multi family homes are being sold and converted into Air BNBs. The joys of a vacation destination region.

[rachel83az]

Vacation housing also counts as luxury housing, IMO. They're products for the rich(er) and result in a lack of availability for the poor(er).