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TRUMP UNIVERSITY WEALTH BUILDING 101

Exhibit 13.1 High Inflation? Stocks Lose, Property Gains
300

200
Dow Jones Index 1,000 100 Consumer Price Index

800

600
Jan-66 Jan-67 Jan-68 Jan-69 Jan-70 Jan-71 Jan-72 Jan-73 Jan-74 Jan-75 Jan-76 Jan-77 Jan-78 Jan-79 Jan-80 Jan-81 Jan-82

Dow Jones Industrial Index Closing
Consumer Price Index Adjusted for Inflation 1967=100

Miami. Between 1980 and 2005, San Francisco properties averaged price
gains of nearly 8.0 percent annually. Over that 25-year period, San Francisco
rentals returned relatively low yields from income during the early years of
property ownership, but the outstanding jumps in equity that resulted from
appreciation more than made up for those weak (and in many cases, negative)

cash flows. Of course, over time, the long-term owners of rentals in San
Francisco—as in other low-yield areas—were able to double and triple the
original rents they collected when they first bought their properties.

Use the Real Estate Wealth Calculator at www.trumpuniversity.com/
wealthbuilding101 to see three ways that real estate investments build wealth.

Income or Appreciation? Should you trade off low, or even negative,
income for a higher expected rate of appreciation?
As a general rule, housing markets today offer one of three choices:

1. If you want to emphasize strong cash flows, you will search for proper-

ties located in geographic areas of slow, no, or even negative growth.

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