Despite the Federal Reserve’s best efforts to reduce inflation, the most recent data indicate it is still high, hovering around 8%. The stock market was affected by this information, and discussions about a recession gained momentum.
As you watch the price of goods and services rise, you probably already feel the effects on your day-to-day existence. Should I still buy a property now, given the strain it’s putting on my pocketbook and the oncoming economic uncertainty? Here is what you need to know if that question is on your mind.
Owning a home has historically been a fantastic inflation hedge.
Prices generally increase in an economy that has inflation. Owning a home has historically been an excellent way to protect yourself from those rising prices because you can fix what is probably your most significant monthly payment (your mortgage) for the life of the loan. This helps some of your monthly expenses remain stable.
The capacity to maintain your monthly payments and guard against future rent increases may be even more crucial now that rents are so high.
Your lease, which usually renews annually, will decide your rent payment amount while renting. A high inflation rate may make your landlord more likely to raise your rent to compensate for the effect. That could be a contributing factor, according to a realtor.com survey, which found that 72% of landlords intend to increase the rent on one or more of their properties in the coming 12 months.
If you’re prepared and able to do so, becoming a homeowner can offer long-term security and a dependable home in times of financial instability.
To sum up
A fixed home cost is the ideal inflation hedge. Get in touch with a real estate expert immediately if you’re prepared to find out more and begin becoming a homeowner.