Buying Real Estate Offsets Inflation – Many Americans are concerned about inflation and its effects on individuals’ cost of living. One of the best ways to shield yourself from inflation is homeownership. Not convinced? Keep reading to find out why.

Buying Real Estate Offsets Inflation

Homeownership Offers StabilityBuying Real Estate Offsets Inflation

One of the key ways homeownership combats the effects of inflation in your life is by stabilizing the cost of your housing. The prices of both homeownership and renting are rising, but when you buy a home with a fixed mortgage rate, you effectively freeze your cost of living at whatever it is now.

Tenants are at the mercy of the economy, where the landlord dictates your housing costs. On the other hand, when you buy a home with a 30 year fixed rate mortgage, you can anticipate the same monthly mortgage payment for 30 years. A home you own will effectively become less expensive over time, the direct opposite of renting. Flip the script from paying rent at the mercy of your landlord, to benefitting every time housing prices increase.

Homeownership Puts You in a Position of Power

A common frustration for renters is how vulnerable they are to inflation, housing supply and demand, and the whims of their landlords. Renters often feel powerless when it comes to cost of living. Homeownership, on the other hand, puts you in a position of power.

Not only will you benefit from the stability of a consistent and predictable monthly housing payment, but as housing costs rise, your equity will grow along with it. You can then choose to leverage that equity for your own benefit. There are many ways to utilize home equity, including:

By owning a home, you will be in an increasingly stable and powerful position over time. Rising costs that feel like your enemy as a renter will become your friend when you own a home. Even inflation will benefit you when the most expensive factor in your cost of living is something you already own.

Homeownership Builds Wealth

Experts consistently say that homeownership is one of the most predictable ways to build generational wealth. The stability and predictability that comes from homeownership will allow you to build wealth in multiple ways:

In many cases, renters with stable employment and good credit can make the switch from renting to owning much more quickly than they may have expected. Contact a lender for a free mortgage pre-approval to find out what you might qualify to buy; many people are surprised to find that they are ready before they imagined homeownership was possible.

The bottom line is this: Buying Real Estate Offsets Inflation. Don’t delay in buying a home because of inflation and the concern over rising housing costs. Experts agree that even if the market cools a bit, we can still expect homeownership to be a major factor in financial stability and building long term wealth.

If you are convinced that homeownership is the best financial route, but are not sure if you are ready to buy, we are here to help. To find out more about becoming a homeowner in Los Angeles, contact our office any time.

Hi-Lux is one of the most unique real estate companies in California. We provide free flights to all our buyers as commercial pilots to give you the ultimate viewpoint of your new home. When you need to see real estate from the air, trust your next home purchase to the experts at Hi-Lux homes. Offices in Irvine, Van Nuys, and Long Beach. Not just luxury – a whole new real estate experience!

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