It’s no surprise that real estate remains the best long-term investment for the past 8 years, according to a poll conducted by Gallup. It keeps topping the list of best investment options and continues to be a popular choice.
Homeownership is becoming a keystone investment option as prices across the board increase due to rising inflation. Price such as goods, services, housing costs are their highest levels in 40 years but buying a home shields you from rising housing payments by locking in your monthly payment.
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment.” Explained James Royal, Senior Wealth Management Reporter at Bankrate. “Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
However, rising costs in housing and rent won’t protect you if you’re a tenant.
At the same time, you are inflation-proof as a homeowner, because the value of your home rise as prices rise. This makes buying a home a great option during periods of high inflation.
“Tangible assets like real estate get more valuable over time,” said Natalie Campisi, Advisor Staff for Forbes, “which makes buying a home a good way to spend your money during inflationary times.”
Becoming a homeowner is really a great investment decision, especially during high inflation times. It effectively shields you from rising housing costs by locking in your mortgage payment and at the same time transforms you into an asset owner that gains value in time.