Inflation is a decrease in the purchasing power of money that is reflected in the increase in price of goods and services. For example, every year, what we pay for milk, bread, and gas goes up. Furthermore, when you own real estate, it keeps up with inflation so you are never falling behind in that investment vehicle.
Inflation also plays a large role in determining what kind of investments to make. With real estate investing, the valuation of your assets increases every year just as inflation does. Considering that with saved cash money there is no way to recoup inflation losses every year, this is yet another reason to invest in real estate…and soon. Even for those would-be investors who are afraid of financial commitment, cosigning on a property with a business partner(s) will help you get better payments and assume less risk overall.
While there are certainly risks associated with becoming a real estate investor, such as loss of money, overpaying for a building, or uncooperative tenants, there are plenty more reasons to invest now.
In fact, if your money is currently sitting in the bank, you are actually losing money. The bank is going to pay you a very small return on your savings, but the actual cost of living goes up every single year by a certain percentage. The best part of owning real estate is that it keeps up with inflation.