Escape the Inflation Trap: Why Homeownership is Your Key to Stability!
- The Jade Zivko Team
- Jun 1, 2023
- 2 min read
Feeling the pinch of high inflation lately? We understand. Prices on everyday essentials like groceries and gas keep climbing, and if you're a renter, you're probably feeling the squeeze even more as your rent continues to rise. But here's the thing: buying a home today can be the smartest move you make. Let us tell you why.
Homeownership shields you from the impact of rising costs caused by inflation.
1. When you own a home, you have a fixed-rate mortgage. This means that your monthly mortgage payment remains the same throughout the mortgage term, typically spanning 15 to 30 years. While other expenses may increase due to inflation, your housing payment stays consistent. This stability provides a significant advantage compared to renting, where monthly payments tend to rise alongside inflation.
2. As you make mortgage payments, you start building equity in your home. Equity is the difference between the market value of your property and the remaining balance on your mortgage. As home values typically appreciate over time, owning a home allows you to benefit from potential increases in value. This helps offset the impact of inflation, as the value of your asset (the home) tends to rise along with rising costs.
With a fixed-rate mortgage, you gain two significant advantages.
You start building equity, which means you're investing in your future.
2. Your monthly housing costs remain stable for the long haul, even as other expenses keep going up.
Unlike renting, where monthly payments tend to rise alongside inflation, a fixed-rate mortgage payment stays the same throughout the mortgage term (typically 15 to 30 years). When everything else is getting more expensive, having a predictable housing payment becomes crucial.
To summarize:
High inflation is affecting everyday expenses, including groceries, gas, and rent.
Buying a home offers protection against rising costs caused by inflation.
Homeownership helps build equity and provides stability in monthly housing costs through a fixed-rate mortgage.
Rent tends to increase with inflation, while a fixed-rate mortgage payment remains predictable.
Investing in homeownership allows you to beat inflation and avoid unpredictable rent hikes.
Don't let inflation hold you back. Take control of your financial future and say goodbye to unpredictable rent hikes.
Need help in planning your real estate strategies? Give us a call today!
source: simplifyingthemarket.com
Jade Kim Zivko
(216) 338-5918
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