How Homeownership Can Help Shield You from Inflation | Doctor Home Loans
At Physician Loans USA , we don’t want you to feel overwhelmed; we don’t want you to feel like you are lost or alone in whatever you are confronting.
Today I would like to talk to you about How Homeownership Can Help Shield You from Inflation
If you’re following along with the news today, you’ve likely heard about rising inflation. You’re also likely feeling the impact in your day-to-day life as prices go up for gas, groceries, and more. These 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.
Homeownership Offers Stability and Security
Investopedia explains that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. 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.
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 your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, says:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
So 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 mean buying a house today costs more than it did 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. The graph below shows how home price appreciation outperformed inflation in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
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.
Bottom Line
If you’re ready to buy a home, it may make sense to move forward with your plans despite rising inflation. If you want expert advice on your specific situation and how to time your purchase, let’s connect.
PLEASE CHOOSE A STATE BELOW AND WE WILL CONTACT YOU DIRECTLY TO GET STARTED.
Physician Loans USA, Real Estate Solutions for Doctors, matches borrowers with potential lenders and agents in the field of mortgage lending, home buying and relocation services.
PLEASE USE THE FORM BELOW AND WE’LL LET A PHYSICIAN LOANS USA SPECIALIST KNOW THAT YOU ARE LOOKING FOR MORE INFORMATION.
At Physician Loans USA, we have a staff that you can connect with via phone or e-mail. Our corporate promise to you is that we will be same business day of your initial inquiry. We take pride in helping relocating physicians throughout the country, and understand the hectic schedule your profession demands.
To connect with us directly,
Or via email: INFO@PHYSICIANLOANSUSA.COM
Visit us at www.physicianloansusa.com
Just call 216-616-4332 for more information
Source: Physician Loans USA News
