Once the Soviet Union collapsed in 1991, it was generally assumed that the world was heading towards an era of untold peace and prosperity.
Countries that were previously economic backwaters in time became economic juggernauts. The Four Asian Tigers — Hong Kong, Singapore, South Korea, and Taiwan — set a new standard for economic development.
Banks, investment funds, pension funds, and insurance companies all wanted to invest in this part of the world. Even Southeast Asia was on many foreign investors’ radars thanks to its gradually liberalizing economies and growing pool of cheap labor.
The notion of booming Asian economies going into an economic downturn would have been scoffed at during the 1990s. After all, countries such as South Korea and its Southeast Asian counterparts had their public accounts in order, maintained high levels of economic growth, tamed inflation, and had high rates of savings and investment.
However, in the summer of 1997, the seemingly flawless economic progress of these Asian economies came to a grinding halt.
Significant mal-investments that Asian governments made along with questionable currency policies started yielding toxic economic results.
Many of these countries were faced with overcapacity in export sectors. In addition, real estate and public work projects were barely used upon completion.
This is typical of bubble environments where a substantial amount of capital, especially foreign capital in this case, is invested in projects with dubious profitability prospects.
On average, the depreciation of local currencies went well over 35%. In the case of the Indonesian Rupiah, it depreciated by a shocking 83%.
Similarly, stock markets in Indonesia, South Korea, and Thailand plummeted by over 50%.
Beyond currencies and stock performance, these Asian economies took a thumping as witnessed by daily bank failures and business closures.
In 1997, the South Korean economy fell by 5.8%. Thailand and Indonesia fell even more precipitously, by 10% or 13% respectively.
The Asian crisis of 1997 served as a wake-up call to booming Asian economies that they were not immune from economic collapse.
By the start of the 21st century, these economies were able to get back on their feet. However, this required them to go through significant restructuring and obtain bailouts from institutions like the International Monetary Fund.
Nevertheless, East Asia remains robust. It’s one of the most prosperous regions in the planet and is arguably one of the new economic centers of the globe when one looks at the type of innovation taking place in the region. U.S. policymakers have taken note of all of this as they complete a “Pivot to Asia.”
What we should learn about economic history is that nothing is set in stone in economic affairs. Today’s prosperity can transform into a nightmare within a decade.
That’s why you must always take proactive steps to secure your wealth.
One of the best ways to safeguard your hard-earned wealth is by investing in income properties.
No matter the economic circumstances, the home remains the center of the universe.
Sure, economic upheavals compel people to make tough decisions, but when push comes to shove people will always need a place to live. This means people will likely need to downsize.
Considering the current economic uncertainty, people are turning to linear markets. These are the more low-profile markets — think Memphis, Tennessee; Jackson, Mississippi; and Birmingham, Alabama — that are in tenant-friendly jurisdictions and provide reliable cash flows.
In inflationary contexts, income properties in linear properties are a godsend.
Always remember this:
When there’s inflation, savers get the short end of the stick as the money they hold depreciates in its value. Meanwhile, debtors benefit as they pay off their debts with devalued dollars.
Inflation is a scourge, but savvy real estate investors can leverage it to their benefit.
Here’s one way to make inflation your best friend when you’re investing in income properties.
Go to your bank and take out a mortgage to obtain a property. Then find a tenant or multiple (if possible).
When you obtain tenants, you no longer must carry the burden of paying the carrying cost of the mortgage. From there, you can pass that cost off to them.
As you do that, the mortgage’s real value depreciates from inflation. The banks get angry, but for you, the empowered investor, this entire process is a dream come true.
That’s the beauty of inflation induced debt destruction.
This will be your key to real estate investing success from here on out.
However, there’s nothing magical about this process. Attaining financial autonomy requires you to put in the work.
But with resources like The Empowered Investor Inner Circle at the tip of your fingers, you’ll have a much simpler path to prosperity.
At the Empowered Investor, you will receive the keys to real estate access by tapping into our network of proven real estate investors.
Based on my multiple decades of real estate investing, the best way to maximize your return on life is by obtaining properties in linear markets where you can find reliable tenants who will pay off your mortgage debt.
This entire process comes in clutch during inflationary scenarios when people’s savings get whittled away as the printing presses churn.
At the Empowered Investor community, you will learn this and other real estate investing secrets that will provide you with reliable cash flows and a rock-solid real estate investment portfolio.
In addition, the Empowered Investor will allow you to use the wisdom of entrepreneurs and investors who will make sure you’re investing in the right linear markets.
My regular podcast show is filled with great content, but at the Empowered Investor you’ll be acquiring game-changing knowledge that will take your real estate investing experience to unprecedented heights. You won’t find this in any of my regular content.
In a time when inflation is all around us, networks like the Empowered Investor will serve as your economic sanctuary and springboard to great wealth.
But sign up quickly, because Empowered Investor rates will be shooting up soon.
Sign your financial Declaration of Independence here: