 Good day, fellow investors. In last week's video about how to protect yourself from inflation and from what might happen with fiscal deficits, monetary policy, monetary policy free, where central banks will print more money, politicians will spark inflation to pay the debts, I said taking a fixed interest rate mortgage for 40 years might be a good thing to do. And then I had a lot of comments saying how on getting mortgages, if inflation occurs in the future and the interest rate goes up, isn't likely the property prices will fall. Everybody was scared that property prices will fall. If there is inflation, property prices will go up because those are fixed. Then you're suggesting to buy a house where the market seems saturated, inventory builds up and people can't afford housing because it's expensive. So it sounds like a bubble and now I'm saying that you should buy into it. So question, housing market play in Australia, massive property price increases. Why are you saying that you should buy a house same here? Interest rates are low, but how high prices are high? We shouldn't take that risk because of the exceptionally low bond yields. When property prices, when that changes, property prices will not be appealing. Now I wish to give you the things that I consider most important when it comes to real estate. I made a video on how to invest really on the technical details, how to find the property to invest, but there are other things that are very, very important. You have to compare the fixed mortgage cost, long-term costs to actually the rent and the difference between the mortgage cost and the rent. Is your margin of safety when buying real estate? That's something I'll explain later a little bit more. Secondly, everybody's focused about stock prices, about property prices. Will prices collapse? What happens if prices collapse? What happens if interest rates go up? And here again, people are not investors. People are speculators. And don't let speculation enable you to make one of the possibly best investments in your life. I'm just sold the property and I'll make special videos about it. And then you'll see how it's perhaps risky not to do something. If you don't do anything, you'll never amount to anything. You'll never get to anything. So it's about doing things in life and managing that risk and reward. This was a really good comment. Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been in corrections themselves. This was said by Peter Lynch and that's an excellent quote that also excellently applies to this real estate conundrum. The third thing that's so crucial when it comes to investing real estate, ask yourself what will the price of any property that you're looking at be in 30 years? In 30 years. Hold forever mortgage, rent, difference, and then ask yourself, what will the price be in 30 years? Everybody has such a short term mindset that it's incredible to me. If you look at properties, think where it will be in 40 years, then make the calculations. And then you'll see that most properties will be up 2, 3 times, 5 times in 30 years that those are probably the best hedge against anything that will happen and that you might do really really well. Let me show you some examples. So I just sold the house. I still think it was a good buy. This is just a neighboring house that's being sold where I used to live in the Netherlands. And if you check this small house, 84 square meters, 300 meters of land, it has to be refurbished, let's say, so the price is 375. Perhaps you can buy it for 360, invest 10, you get 75, 10,000, you get another 30,000 extra for refurbishment. So 40,000, let's say you invest in the house, you modernize it and you have yourself a mortgage of 400,000 with a good, let's say, modern house. Compare it to the next door neighbor that has invested a little bit into expansions, you can do that too if you want. And the difference is a staggering 200,000 euros. So from 375, you add 20 square meters, you refurbish and you are 200,000 up. With 50,000 euros, you can do that and you can make 150,000. So that's one, but that's flipping, that's speculation, still possible to do. What I want to focus is investments. If you look in the Netherlands, also in the US, fixed rate, 30 year mortgage rates, 100% finance are from 2.5% to 3%. Now, if I take a loan of 400,000 at 3% over 30 years, my first month mortgage will be 1,686. Over after 30 years, it will still be 1,686 because it's a fixed interest rate mortgage. If I do the same in the US, if I invest 100,000 as a down payment, the loan amount is 300,000, the interest rate 3.8%. Then my total monthly payment with tax, I think, and insurance will be 1,681. I don't know if the insurance is included or not, but you have to still compare that to the possible rent from the property. I looked at the rents of similar properties in the area. This is 50 meters, 60 meters from the house. You see that the rents are 2,400. Let's say those are 2,200 and your cost of a mortgage is 1,700. The 500 difference pays for the cost, the taxes, the insurance, the agent that manages everything. That's your margin of safety. This is actually rentals for housing in Europe. Look at how much those went down over the crisis. Didn't. Actually rentals went up. So as an investor, you look at this, you see, okay, over 20 years, the rent will increase 50% probably a few percentage points per year as those are allowed to be increased and your mortgage will always be fixed. If we look at the US and rents, all these gray lines are recessions. Only in the 2009 recession, rents stopped growing a bit. But for the rest, it was just higher, higher and higher. Investors look at rents, speculators look at housing prices. So my message is really look at real estate as an investor. Nobody knows where the prices will go up or down. If you buy a good property, do a smart thing. Really know your area. I really know this area. I think that is a good investment. If you are from the Netherlands and you can take a mortgage, go buy that, take a little bit higher mortgage, invest little equity, 10, 20,000, refurbish everything and then rent it out or sell it after six months, I think you'll make from 50 to 100,000 on a 10,000 investment in your time. If you just want to rent it out or live in it, it's still a good investment. Live a few years, then move to other country. You are then allowed to rent it out and you can make nice money. If you can move to some other country after 28, 30 years, if there is something extra, you can pay down the mortgage after 20 years, you have a wonderful pension of about 2,000 euros, probably 3,000 in 20 years and you have the house that will probably be worth after 20 years. I'm saying a million, if not even higher, 2 million euro while your mortgage will always be the same. So to conclude, the message is don't forget to check my video on real estate investing, how to find those properties. The message is fix rate mortgage, compared mortgage cost to the rent, that's your margin of safety. Ask yourself what will house prices be in 30 years and then, of course, this is one way to hedge your finances against what might happen with inflation, hyperinflation, recessions. As you can see rents don't fall that easy if you have good properties. Thank you for watching. Looking forward to the comments as this is a contrarian view again in relation to everybody expecting drops, crashes in real estate prices. Real estate prices are one, specific properties are another deal. So you might want to start thinking in specific properties rather than real estate prices. That property difference is 200,000 euros, the investment isn't 200,000 euros. So it is already a discrepancy there. See how that fits your investing style. Thank you and I'll see you in the next video.