Are you feeling the pinch of high inflation on your everyday expenses like groceries and gas? As a renter, you may also be dealing with rising rent prices. With the added uncertainty of a possible recession, you may be questioning whether buying a home is still a wise choice. The good news is that it is! Here is why you should consider purchasing a home despite these challenges.
Did you know that homeownership can protect you from the rising costs of inflation? According to Freddie Mac, buying a home not only allows you to build equity, but a fixed-rate mortgage can also provide long-term stability for your monthly housing costs. Unlike volatile rent prices that tend to increase with time and inflation, a fixed-rate mortgage offers predictability over the life of the mortgage (typically 15 to 30 years). It is important to keep your housing payment stable as the cost of most other expenses rises.
A fixed-rate mortgage shields you from potential rent increases. As inflation rates continue to soar, there is a possibility that your landlord may increase rent charges upon your lease's renewal to counteract the impact of inflation. A recent survey showed that 73% of property managers plan to increase rents for tenants over the next two years. However, owning a home offers a significant advantage of having a predictable monthly payment despite economic uncertainties. Renters, on the other hand, are more vulnerable to rising costs and don't enjoy the same benefits as homeowners.
In times of high inflation, having a stable housing payment becomes crucial. Begin your journey to homeownership by connecting with Scott today for valuable information about starting your search for a new home.
