Friday, June 17, 2022 / by Laura Larson
How an Investment in Real Estate Can Benefit You During High Inflation
If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as rents rise. “Rising rents, which continue to climb at a double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation is motivating today’s first-time homebuyers.”
When Inflation Has Risen in the Past, Home Prices Have Too
Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like this: “There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .”
And since rising home values help increase your equity, and by extension your net worth, homeownership is historically a good hedge against inflation.
Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, connect with Laura Larson today.