Real Estate: Real estate as a currency alternative

Summary notes:

The conversation revolves around the relative value of currency and how the value of money is relative to the faith in the currency.  Wise investors in countries with large debt problems  convert their currency to a more stable currency or some other asset class that has a better relative value.  

People don’t tend to not think of assets as currencies, but a currency has two parts: store of value and medium of exchange.   So by definition assets can fill the role of the store of value component of a currency that is no longer working  as a good store of value even if it’s a phenomenal medium of exchange. The money that people move out of an unstable currency is the store of value part of their wealth.  

Real estate (especially in Texas)  is an asset class many investors are turning to as an alternative to store a good chunk of their wealth to protect its value. 

Timestamps

0:01:37 Exploring the Relationship Between Currency and Real Estate in Texas

0:07:58 Conversation on Real Estate as Currency in the Golden State

 

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Phillip Washington, Jr. is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.