Rising inflation is common today as prices go up for gas, groceries, and more. If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path. Each situation is different, but homeownership can help you combat the rising costs that come with inflation.
Homeownership Offers Stability and Security
During a period of high inflation, prices rise across the board for both rental prices and home prices. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in homeownership.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. If you get a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of it.
Even if other prices rise, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Use Home Price Appreciation to Your Benefit
While it’s true rising mortgage rates and home prices make buying a house more expensive than a year ago, you still have an opportunity to set yourself up for a long-term win. Buying now lets you lock in at today’s rates and prices before both climb higher.
In inflationary times, it’s especially important to invest your money in an asset that traditionally holds or grows in value.
To win in today’s real estate market, you must have a competitive edge over other buyers. It takes the right strategies and a trusted lender to help ensure that you stand out from the crowd. Please don’t hesitate to reach out for help!