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by Rufbdbskrufb473 1330 days ago
> It is simply not possible to invest in anything that can keep up with the inflation

Why not just invest in diversified real estate rather than betting on a single property and its local market? In expectation, the returns should be similar on average but with lower volatility.

I'd rather rent and put capital in a real estate investment fund. I guess something could be said for buying a property if you're very certain that you'll live there for the rest of your life, but if you would ever like to move, you'd be highly exposed to fluctuations in the value of a single asset, your home.

1 comments

That's a good idea, real estate investment funds accepting investment from retail investors don't really exist in my country. There are real estate investment companies which I can buy shares in. I am afraid of buying stocks, but I may consider that.

Principally speaking you are right to think that real estate investment funds should bring on par profit with real estate increases but during times of very high inflation as in Turkey, you lose some because funds don't 100% invest in their base asset, a significant part (around usually 20%) stays liquid. From that 20% you lose the ability to cope up with inflation, as the official interest rates are negative. (In Turkey's case above -70% a year).