GROWING REAL-ESTATE COSTS AND INFLATION
Recurring Boom and Bust Cycles in the real estate market and Inflation may cause prices to rise or fall drastically. We have seen this in the Seventies, Eighties, Nineties, and Two Thousand’s. For Example, in 2008, we witnessed a Financial Crisis which led to Housing Prices Crash. And now, in 2019 – 2022, we are seeing price gouging and runaway inflation during the pandemic. Whatever savings people had have declined in value, so they can no longer purchase a property they could have gotten before. And because of this, people struggle to buy any property. Because of this, it may take years before they can recover and be in the position to purchase any property.
As a rule, an initial deposit/down payment is needed, and when making a purchase, people must borrow the rest of the money from somewhere. Most of the time, the down payment can be as much as 30% of the purchase price, and many people struggle to acquire that initial down payment, which keeps them away from buying real estate. So if something like what is described above happens, it keeps them out of Real Estate Market for a long time.
Square Block lets you gradually build your initial deposit and down payment by directly investing your money in real estate. So, if property prices rise, your down payment grows with it, and if prices fall, you will have an opportunity to Dollar Cost Average and take advantage of falling prices. Most importantly, you will not lose value due to inflation or price gouging.