inflation

Small Apartment Mastery & Inflation

More interesting inflation news. Most major auto manufacturers are scaling back luxury features because they can no longer receive microchips from vendors in a timely fashion. The side affect is a decrease in autos available for sale – which in turn will cause their prices to continue to rise.
https://www.zerohedge.com/markets/automakers-cutting-out-high-tech-components-vehicles-amidst-unprecedented-semi-shortage

Late 2019 I was searching for a Huracan or GT3RS, around the $160-175K range. Both vehicles used prices have jumped nearly $50K in the last 12 months.
I bought a ’71 Landcrusier last month for under $15k. It runs but is dangerous to drive. We are putting about $6k in work – chatting with the guys at the shop Friday and they said I could easily flip it for $25-30K.

I bought a 2000 Type-R in 2018 for $25k. It is believed that there are less than 1,000 left in the US. My guess is, it is worth somewhere north of $40k.
Why am I sharing my odd car collection with you?
Simple – Inflation

The graphic above shows what $50k of lumber could build in the last 12 months. Over the last year lumber has shot up 377%. I expect some of those gains to subside by Q4 ’21, however it will never go back to 2020 prices.

This is what inflation looks like – and if you are not invested in real estate – you must own the real estate not just the notes – your portfolio is going to be slowly destroyed by inflation.
This afternoon we are going to walk a few apartments. On my desk I have a 10unit we will likely contract, 40 unit we are absolutely going to buy and a +100 unit we are negotiating on.

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