Despite dramatic ups and downs in recent years, an annual survey from Gallop shows Americans still feel that real estate is a wise investment. In fact, real estate has placed first for the past nine years, with an even higher number of respondents voting for it than they did in previous surveys. For nearly a decade, it seems that American confidence in real estate’s investment worthiness has remained high.
For those hoping to buy a home in the near future, the results of this poll should be reassuring. Even in a time of high levels of inflation, most people are still willing to bank on real estate as a safe and strategic financial move.
Benefits of Real Estate Investments During High Inflation
You’re probably aware that rising inflation rates have had a dramatic effect on the price of everyday necessities like food and fuel. Housing costs are also impacted; both rental rates and home prices are increasing across the country. Buying a house offers a distinct advantage at a time like this as opposed to renting a property. When you purchase a home at a fixed rate of interest, you’re essentially locking in a consistent monthly payment. So while costs are rising in every other aspect of your life, owning your home can provide stability during this period.
This is particularly beneficial when you consider that housing costs are typically one of the biggest line items in a monthly budget. With a stable mortgage payment, you won’t find yourself at the whim of a landlord when it comes to the price you’ll pay to keep a roof over your head. This is quite the motivator for many first-time homebuyers.
Historic Patterns Regarding Home Values
History has shown that when inflation rises, home prices also increase. This is good news if you want to buy a house right now. Once you purchase your home and lock in your mortgage rate, you can usually count on the value of your property increasing. This can provide you with increased equity as well as a boost to your overall net worth. Your home becomes a strong asset that serves as a buffer against surging inflation, making it a wise financial investment. Now may just be the perfect time to start viewing homes for sale in Lakeland.
As demonstrated in Gallop surveys for the past several years, there’s a common consensus that real estate investment is a smart and popular move. Buying a home is usually a smart long-term investment strategy, even during periods of high inflation. In fact, becoming a homeowner can actually shield you from some of the effects of the rising cost of living. A home is an asset that can be expected to grow in value over time. To learn more, consider working with a knowledgeable and trusted real estate professional in your area.