Everyone aware of rising inflation. Singapore’s annual inflation rate edged up to 0.7% in August 2018. It was the highest rate since May 2017. In August, food inflation rose to a 19-month high of 1.7%.
Do you know that given a rising inflation of 1.7% per annum, if you are spending $2,000 per month today, you will have to spend $2,800 in 2038?
You may not feel an impact while you are still working, but what if you plan to retire? You will feel a huge impact if prices are rising but your income is constant!
According to Investopedia, Real Estate is the best choice against inflation. Not just the increase of the resale value of the property over time but what is so amazing is that the property can be used to generate rental income.
However, if you own only HDB flat, it is merely for own stay, but not used to against inflation. That’s why “sell one buy two” makes sense!