Everyone has noticed the increased prices of everything from eggs to gas. If you are a renter, you're probably feeling it even more as your rent continues to rise. With these escalating costs and concerns, you may be questioning whether it's still a good idea to buy a home today.
The answer is absolutely, and here's why.
Homeownership offers protection against the rising costs brought by inflation. Does that seem contradictory? Actually, it makes perfect sense. According to Freddie Mac:
"Buying a home today not only helps you build equity but also provides the advantage of a fixed-rate mortgage, which can stabilize your monthly housing costs in the long run, even as other expenses continue to rise – as we've witnessed over the past few years."
While rents tend to increase over time, a fixed-rate mortgage payment remains consistent throughout the mortgage's lifespan, typically spanning 15 to 30 years. This stability in your housing payment becomes particularly crucial when the prices of most other things are rising. Not only does a stable housing cost allow for easier budgeting, but over time homes typically appreciate, setting homeowners on the path to wealth.
Renting, on the other hand, means your monthly payments are susceptible to inflation. As inflation rises, your rent tends to follow suit. Of course, there are benefits to renting, such as greater flexibility to move. If you're considering purchasing a home in the midst of inflation, it's essential to conduct thorough research and carefully consider the advantages and disadvantages. With diligent planning, you can make a prudent investment that safeguards you against the escalating expenses of inflation and offers potential for future growth.
I'm eager to discuss how homeownership can contribute to building wealth. Let's have a conversation and embark on this journey together. Call 925-200-2126