Inflation is at its highest rate in 40 years. Prices are rising across the board for the items you use and depend on every day. Everyone’s talking about it, and the ramifications of this sharp rise have been featured across media channels. We’re seeing an inflation rate higher than 8% for the first time since December of 1981.
If you’re like much of the country, you’re probably starting to feel the pinch. Gas is incredibly expensive compared to the costs we’re used to. Other essentials like groceries and personal care items have also been impacted. These increases may be causing you to worry about your finances. You may even be reconsidering any large purchases or investments. After all, these types of expenditures may seem risky in such tumultuous times.
Perhaps you had been thinking about buying a new home. Now, you wonder if it’s such a good idea, given the rising prices and mortgage rates, waiting might make sense. The truth is, homeownership is often a smart financial investment, particularly during unstable economic times such as a period of dramatically high inflation. This will, of course, depend on your particular circumstances. Such factors as stable income, future plans, and past credit will undoubtedly influence your decision. However, owning a home can actually bolster your security during a time of rapidly rising costs of living.
Prices are surging on nearly everything right now. In addition to your grocery budget and gas costs, you may be facing higher rent or other housing costs. Home sale prices are definitely seeing a markup. You may wonder how to get a handle on your monthly expenditures. The solution could actually be to invest in home ownership.
Think about it. Your rent or mortgage is usually your most expensive budget item. There’s a good chance rental costs will go up according to inflation. Monthly mortgage payments, on the other hand, remain steady if you opt for a fixed-rate mortgage. Being able to count on this monthly expense can provide you with a great deal of stability, rather than putting yourself at the whims of a landlord.
What about the fact that housing prices and mortgage rates are higher than they were just a few months ago? This is a question many consumers have. Something to remember is that buying a home usually increases in value over time. It’s considered to be a relatively safe investment. Obtaining such a secure asset can significantly offset the pressures of inflation.
In fact, average home prices have historically shown greater growth than that of inflation since the 1970s. This stability offers strong insurance against the effects of inflation.
Since home prices are forecasted to continue their ascent, now may be the best time to begin touring homes for sale in Lakeland. Owning a home provides you with both equity and increased net worth, providing you with stable monthly housing expenses and protecting you against unpredictable influences like inflation.