Real Estate is the Best Investment You Can Ever Make
Americans has voted REAL ESTATE again as their chosen long-term investment in an annual Gallup survey. It's also not the first time it's been at the top of the list. For the past eight years, real estate has been on a roll, continually gaining traction as the finest long-term investment.
This survey should reassure you if you're considering about buying a house this year. Even when inflation is rising, as it is now, Americans feel that real estate is a great investment.
Why Is Real Estate a Good Investment in Inflationary Times?
With inflation at its greatest level in 40 years, understanding the financial benefits of homeownership is more vital than ever. Inflationary pressures mean that prices are rising across the board. This covers things like commodities, services, and housing expenditures, among other things. However, when you buy a house, your monthly housing payments are locked in, thereby protecting you from rising housing costs. Bankrate's Senior Wealth Management Reporter, James Royal, describes it this way:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
If you’re a renter, you won't get that benefit, and you won't be shielded from rising housing prices, particularly rents.
Home prices rise during inflationary periods, according to history.
Your property, as a homeowner, is an asset that normally appreciates in value over time, especially during periods of inflation. This is because when prices rise, so does the worth of your property. As a result, purchasing a home is an excellent hedge against excessive inflation. Forbes' Natalie Campisi, who works as a staff advisor, says:
“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”
Housing is an excellent investment, particularly when inflation is high. You're protected from rising housing costs when you lock in a mortgage payment, and you possess an asset that normally appreciates in value over time. Let's connect now if you'd like to learn more about how owning a house might be a fantastic investment for you.