How Owning a Home Can Protect You Against Inflation
Looking back to the 1960s, inflation was a little more than 1%. However, shortly after that, inflation numbers began to creep upward with the number reaching a whopping 14% in 1980. With inflation numbers today inching forward, there's some concern among investors that the country might reach these high numbers again.
When inflation numbers rise, the cost of goods also increases. As a consumer, you're likely aware of how the increase in prices affects your daily life as you pay more for groceries and gas. These rising costs might make you re-evaluate large purchases you have planned, including buying a home.
Before you put purchasing a home on the back burner due to inflation costs, there are several benefits to buying a home that you should consider. The main one is that by purchasing a home, you stabilize your biggest monthly expense, which is your housing cost.
By securing a fixed-rate mortgage, you secure the monthly mortgage payment for the length of your loan, which can typically last between 15 to 30 years. Even though other prices might rise due to inflation, your housing payment remains consistent as long as you have a fixed-rate mortgage.
During inflationary times, it's important to invest your money in an asset that traditionally increases in value over time. The good news is that experts predict that home prices will only increase due to supply and demand, so your property should appreciate in value.
If you're ready to purchase a home, you might want to consider making the move. For more assistance in finding your dream home, reach out to a trusted real estate professional.
Sources: Reliant-mgmt.com, Forbes.com, Keepingcurrentmatters.com, Guy R. Vetrano