OUR ADVICE – As interest rates rise due to inflation fears, here are the solutions to take advantage of this backdrop.
The multiple stimulus plans put in place all over the world make investors fear a resumption of inflation (1.9% in June in the euro zone). As a direct consequence of inflationary fears, interest rates are rising, with bondholders demanding better remuneration to compensate for future depreciation in the repayment of their capital.
1. Why be interested in real estate?
Anyone who says increased inflation logically means an increase in household income. Real estate could then do well. The growth in income of potential buyers should, in fact, lead to an increase in prices. In addition, rental investment is not penalized by inflation. Rents may be revalued each year up to the INSEE rental benchmark (IRL), which is revised according to changes in consumer prices. As a bonus, the mortgage loan repayment effort is lower, because the monthly payments remain the same, while the income of
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