You may be noticing that inflation is dipping into your pocketbook as items like food, rent, entertainment and other goods and services are costing more money. So, how can you protect yourself from inflation?
Did you know that owning real property is one of the best ways to inflation-proof your economic portfolio? That's because once you purchase a home, you lock in your monthly mortgage payment for the foreseeable future. So, while other costs rise, you'll have peace of mind knowing that a big chunk of your living expenses will stay consistent.
You'll want to take advantage of the lower mortgage rates and home prices while you can. Mortgage rates jumped to pre-pandemic levels last week due inflationary pressures. Home prices are also expected to continue their rise over the next year according to housing experts such as Lawrence Yun from the National Association of Realtors, Brad Hunter from Hunter Housing Economics and Daniel Hale from Realtor.com just to name a few.
Keep in mind that when you rent, your landlord can hike your housing costs. Also, mortgage rates are on the rise but they are still at historically low levels. While inflation lowers what your dollar can buy, low mortgage rates boost your purchasing power by keeping your monthly payments stable.
The best hedge against inflation is a housing cost that is fixed (home ownership). That’s why you should make an effort to buy a home this year. Let's get together to come up with a plan to help you find the perfect home while they are still affordable.