The topic of housing inflation is NOT really as much of a concern when you rehab a home.

The Fed, inflation, mortgage rates, homebuyer sentiment, institutional investors, consumer surveys and so on, and so on, and so on and so on… At the core of each of these aforementioned talking points, we can (arguably) find a property purchase platform based predominantly upon move-in ready resales. Move-in ready resales – sales of (and the purchase of) existing homes that are bought by buyers at, in most cases, higher prices. These are homes which more times than not, do not need to be rehabbed. These are homes which had been purchased at an earlier date by the now-sellers. Homes which are now being sold (i.e.: resold) to new home buyer. Homes being sold at higher prices.

Correlation: A) Move-in ready resales – higher home prices, B) Housing inflation – affordability (or a lack thereof).

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Author: Ted Ihde

Ted is a real estate broker, a real estate developer as well as co-CEO of Team With Heart.