Owning a Home Helps Protect Against Inflation You & rsquo; re most likely feeling the effect of high inflation every day as costs have actually increased on groceries, gas, and more. If you & rsquo; re a tenant, you & rsquo; re likely experiencing it a lot as your rent continues to increase. Between all of those raised expenses and uncertainty about a potential recession, you might be questioning if it still makes good sense to purchase

a house today. The short answer is-- it does. Here & rsquo; s why. Homeownership actually guards you from the increasing expenses inflation brings.

Freddie Mac describes how:

“& ldquo; Not just will purchasing today assist you begin to construct equity, a fixed-rate home loan can stabilize your monthly housing costs for the long-lasting even while other life expenses continue to rise –-- as has been the case the previous few years.”

& rdquo; Unlike leas, which tend to increase with time, a fixed-rate home mortgage payment is predictable over the life of the mortgage (generally 15 to 30 years). And, when the expense of most everything else is increasing, keeping your real estate payment stable is particularly crucial.

The option to homeownership is renting –-- and rents tend to move alongside inflation. That means as inflation goes up, your monthly lease payments tend to go up, too (see chart below):

< img alt=""data-image=" "1000x750"data-image-focal-point="0.5,0.5"data-image-id="646e2ee9e02a246ccabf87d3" data-image-resolution ="1000w"data-load="false" data-src ="https://images.squarespace-cdn.com/content/v1/5b9ada8b2714e5f76f88a8a3/71a16137-bf0b-45c0-b9ab-4a452dfaad42/rents-increase-with-inflation-most-years.png" data-type =" image "src="https://images.squarespace-cdn.com/content/v1/5b9ada8b2714e5f76f88a8a3/71a16137-bf0b-45c0-b9ab-4a452dfaad42/rents-increase-with-inflation-most-years.png?format=1000w"/ > A fixed-rate home loan permits you to secure yourself from future lease hikes. With inflation still high, when your rental arrangement comes up for renewal, your residential or commercial property supervisor might choose to increase your payments to balance out the effect of inflation. Maybe that’& rsquo ; s why, according to a recent study, 73% of property managers prepare to raise leas over the next 2 years.

Having your largest month-to-month expenditure remain steady in a time of economic uncertainty is a major perk of homeownership. If you continue to rent, you don’& rsquo; t have that exact same benefit and aren’& rsquo; t as secured from increasing expenses.

Bottom Line

A stable housing payment is particularly essential in times of high inflation. Let’& rsquo; s connect so you can find out more and start your journey to homeownership today.