Here are three ways owning real estate is a great hedge against inflation.
Today we want to talk about a topic that’s on everyone’s minds: inflation. Things are getting more expensive, and it doesn’t look like it will slow down anytime soon. Here are three ways real estate protects you against inflation:
1. Mortgages are fixed, but rents increase with inflation. When inflation is high, landlords incur more costs. Utilities, maintenance, and other overhead costs get more expensive. To compensate, they pass these costs on to their tenants. Meanwhile, if you own a home, you are your own landlord. Your payments are fixed, and you’re building equity every month. Now is a fantastic time to become a homeowner if you aren’t already.
2. Home values usually outpace inflation. When houses are appreciating at our current pace, homeowners build tons of equity. The possibilities of this equity are endless; you can use it to finish your basement, remodel, or reinvest it in investment properties.
3. Buyer demand is high for pre-existing homes. New construction houses are becoming incredibly expensive, so most buyers are focused on pre-existing homes. If you own a home, now might be the time to take advantage of your equity position and the market by selling.
“Now is a fantastic time to become a homeowner if you aren’t already.”
Real estate is a great way to protect your wealth during these uncertain times. If you have any questions about becoming a homeowner, investing in real estate, or using your equity, please call or email us. We’d love to hear from you!