How Homeownership Can Help Shield You from Inflation

Rising consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile. If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation.

Both rental prices and home prices are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in homeownership. If you get a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. So even if other prices rise, your housing payment will be a reliable amount that can help keep your budget in check.

In inflationary times, it’s especially important to invest your money in an asset that traditionally holds or grows in value. Home price appreciation outperformed inflation in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation.

So, what does that mean for you? Today, experts say home prices will only go up from here thanks to the ongoing imbalance in supply and demand. Once you buy a house, any home price appreciation that does occur will be good for your equity and your net worth. And since homes are typically assets that grow in value (even in inflationary times), you have peace of mind that history shows your investment is a strong one. If you want expert advice on your specific situation and how to time your purchase, DM me.

#Inflation #firsttimehomebuyer #opportunity #homeownership #housingmarket #househunting #makememove #homegoals #houseshopping #housegoals #investmentproperty #emptynest #downsizing #locationlocationlocation #newlisting #homeforsale #renovated #starterhome #dreamhome #curbappeal #keepingcurrentmatters