Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk posted in a Twitter thread on Monday advising followers to own “physical things” when inflation is high.
In the tweet, Musk said “As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.”
The biggest takeaway for some followers seems to have been that Musk is still holding his Dogecoin (CRYPTO: DOGE) because the cryptocurrency’s price saw a temporary spike shortly after the tweet.
However, the more important point to Musk’s message is that physical assets are generally the safest investment during times of high inflation. This message coming from the “Dogefather” himself should speak volumes.
While Musk referenced owning a home, real estate, in general, performs well for investors during years of high inflation. Specifically, single-family homes, multifamily, self-storage and farmland.
Running out to buy a property may not be the most feasible option for most investors right now, but luckily there are options available to buy shares of fractionalized real estate or even invest in a fund that has a portfolio of properties.
Here are some ways you can buy fractional shares of these inflation-resistant properties.
Single-Family Homes: The real estate crowdfunding platform Arrived Homes has made it possible for retail investors to buy shares of individual rental properties with as little as $100. The platform allows users to browse properties, similar to a real estate listing site, and simply choose which homes to invest in.
Multifamily: There are multiple options to passively invest in multifamily properties through crowdfunding. Accredited investors can browse offerings on sites like CrowdStreet or RealCrowd and invest in a project with minimum investments starting at $25,000.
Options are a little more limited for non-accredited investors, but CalTier Realty has a multifamily fund with a minimum investment of only $500.
Self-Storage: The real estate crowdfunding platform RealCrowd currently has an offering for a self-storage portfolio, Reliant Self-Storage Fund III, with a minimum investment of $50,000. (read offering announcement)
Farmland: Agricultural land may be one of the best long-term real estate plays available right now. Farmland acreage is shrinking across the country at a rate of over 1 million acres per year, while the global demand for food is steadily rising. The farmland investing platform FarmTogether recently launched a new offering for an organic vineyard in California, with a minimum investment of $15,000 (read offering announcement)
Interested in exploring more real estate offerings? Benzinga’s Alternative Investment Screener allows you to browse available investment opportunities based on your personalized criteria.
Photo: Courtesy of Heisenberg Media via Flickr
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