Honolulu Real Estate and Inflation?
June 17th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
More and more reports are coming out pondering significant economic inflation. As much as I don’t want to see the inflation of the late 70’s and early 80’s, I would be remiss to turn a blind eye to its possibility. Two recent articles at the Wall Street Journal’s website talk about signs that inflation may be on its way.
“Still, the Fed chief said, the runup in oil prices “has added to the upside risks to inflation and inflation expectations.” Timothy Geithner, Federal Reserve Bank of New York president, echoed those remarks in a separate appearance Monday.”
CLICK HERE TO READ THE ARTICLE.
“On Tuesday, China’s stock market was the latest to feel the blow, with the benchmark Shanghai Composite Index tumbling by 7.7%, to its lowest close this year. The drop came after the government announced steps to remove cash from the financial system in an attempt to tamp down inflation.”
CLICK HERE TO READ THE ARTICLE.
How does this tie into Honolulu real estate ownership? If inflation does happen, the price of everything will begin to rise. During our last inflationary period, real estate was a great hedge. Therefore, specifically purchasing more core Honolulu real estate could be a great place to be if inflation should come.
Today’s picture was taken from the a valley across from Makiki Heights and it shows some of the great homes located in Makiki Heights.
Keahi, thanks for stopping by my blog last week. It led me here to see a great Honolulu blog. Keep up the good work my friend!