How A Successful Vaccine Will Encourage The Rise Of Land Value
Since the Coronavirus recession, governments around the world has been printing more and more money with the aim to stimulate the economy. Interest rates has been reduced to almost zero causing low risk investments to become terrible reward-to-risk investments. This led to investors having no choice but to put themselves in to riskier assets.
A successful introduction of vaccine might sound like a good news to the world but what else might follow can be a nightmare. The pandemic has caused production to fall and businesses to default, a successful introduction of vaccine will start moving the whole economy back to how it was used to be pre-Covid. However, the supply of goods & services will still remain restrained due to infected people unable to work as well as failed businesses having to start from scratch. Once Covid-19 restrictions are removed, there will be a surge in demand as people are becoming more optimistic. People will start borrowing money from the banks again, expenditure increases, and ultimately, there will be an imbalance between demand and supply that will lead to a sharp spike of inflation. An over-stimulated economy by the government during the Covid period will also intensify the consequences.
Inflation reduces the value of money, causing money saved in banks to lose its value. In order for investors to protect themselves from these consequences, they need to exchange their money with scarce resources like land where the supply cannot be increased. Land is a great resource to protect investors against inflation because land is scarce and the value of land rises with inflation. On top of rising value of the land due to inflation, the value also increases as developments approaches. Therefore, land, if invested at the right time and location, will not only protect investors from inflation, but also help investors to profit from it. As the vaccines are starting to roll out, now is the right time to invest and we are here to show you where, contact us now at kearealestatemy@gmail.com .
