Leave a Message

Thank you for your message. I will be in touch with you shortly.

Homeownership Can Help Hedge Inflation Pinch

Homeownership Can Help Hedge Inflation Pinch

Help Control Your Living Expenses By Owning Your Own Home

Inflation is one of the hot news subjects these days and is at an all-time high. According to a statement by the National Association of Home Builders, “Consumer prices accelerated again in May as shelter, energy, and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981.”
 
With inflation rising many are experiencing the impact of common items from gas to groceries. Those considering a home purchase in the near future can weigh in on the decision of whether it makes sense to act soon or potentially wait. Everyone’s answer will be different depending on their own situation, but here is how homeownership can help you combat some rising costs. 
 

Homeownership Assists With Controlling Your Monthly Expenses

During times of inflation, prices will rise for many things like food, entertainment, other goods and of course housing including both home prices and rental prices. Buying a home will allow you to control one of your largest monthly expenses being your housing cost. When you have a fixed-rate mortgage the biggest portion of your housing expense will remain the same. While it is true other costs like insurance and taxes may increase over time, you won’t have the same control if you are renting. 
 

Investing in an Asset That Typically Outperforms Inflation

While homes today are more expensive than last year, buying a home still sets you up for the long term. That is because you want to be invested in an asset that historically outperforms inflation. Over the last 5 decades home price appreciation has outperformed inflation for most years per data from NAR, CoreLogic, and the Consumer Price Index.
 
So ultimately if you are looking to buy a home in the near future there are things in your favor to set you up for hedging inflation. 

Work With Donna

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.

Follow Me on Instagram