Purchasing a Home is a Hedge Against Inflation

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Purchasing a Home can be a Hedge Against Inflation

The cost of goods has steadily increased over the decades. A good example of inflation would be the cost of mailing a letter in 1950 was was two cents and today in 2021 it is 55 cents to mail a letter. One financial strategy many people are using to beat inflation is to invest in real estate. The average mortgage rates is around 3%. Locking in a low, fixed rate 30 year mortgage will keep a home buyer from paying a much higher interest rate in the future. 


Rising Cost of Rent

Purchasing a home will prevent a homeowner from the rising cost of rent. Homeowners are shielded from the mounting rental prices because their costs are fixed (not including taxes, repairs/maintenance and insurance costs). The properties value should increase over time, making it a tangible asset that can be used that can be used in a variety of ways.  


Final Thought

Before purchasing a home there are a some consideration. A home buyer should consider how long they plan to live in the home. When selling closing costs can be costly. If there isn't enough equity in the home the homeowner may have to come out of pocket for any addition costs. So before putting your home on the market contact a local Real Estate Agent familiar with the area. They can run the numbers using a Comparative Marketing Analysis and a Seller's Estimated Net Sheet to give an idea of the the homes value and cost to sell. For more information about Buying and Selling a home in Central Texas contact Allen Deaver of Asset Realty.


Allen Deaver Realtor