Dr. Martin Hash Podcast

One of the main investment refrains of the Baby-Boomer generation was to invest in property. “There's never going to be any more of it,” went the Pop pseudo-investing advice, and a lot of that generation did very well with the concept. However, in this new world order, where economic collapse is on the menu, is property still the go-to investment vehicle? To answer this question, we've got to predict the future, an impossibility.

Many people expect deflation due to America's tremendous production over-capacity; no scarcity there, but those items that do have a limited supply, like property, will probably experience inflationary pressures; so is property a good hedge against inflation? Unfortunately, Property taxes will show a commensurate increase. If your income is not inflating at the same rate, ever-increasing taxes will force you out of your investment, but you'll be taxed on the inflationary gains which are really no gain at all. Plus, the upkeep on the property requires an expensive management group, or time and a skillset you may not have. In short, Investing in property has too many downsides to recommend, unless you're “investing” in your own home.