While in Charlotte recently visiting family, we went to lunch at a local restaurant that’s been around for decades. Upon sitting down at the table, we were
greeted with the note in the attached photo informing us that due to rising food costs, rather than reprinting their menus, the owner had added a 10% surcharge to all menu items.
The waitress stated that prices are going up rapidly and that they are having difficulty getting chicken as well as help. This matches what I’m hearing from others in the food and retail businesses and what I’d commented on in my last blog post which was written the morning before our lunch outing (how timely). The hope is that this 10% surcharge is a temporary item, but don’t count on it. My prediction is that its 10% this month, but if we go back in a few months, it will have increased again. I remember years ago when Fedex added a “fuel surcharge” to cover a spike in fuel costs, but has that temporary charge been rescinded? For the past several years, we’ve been told the inflation rate has been nominal, but in reality, its been rather steep via “hidden inflation”. Example, a box of Ritz Crackers last year might have sold for $2.99 and today the price is still $2.99 for the box, but the size of the box today is only 20 ounces versus 24 ounces previously. That’s inflation. We can easily see it in fuel costs.
So with that foresight, we encourage you to consider your position in real estate. The inflation bug has certainly hit urban/suburban housing prices, but rural properties have been more modestly priced. Values have increased in the past two years, but not at the same rate as other property types. Investing in a rural property could be a great investment for the long term, and now is a great time while financing is still available, even for vacant land. So call us today and we’ll be glad to assist.
