And the Winner Is...REAL ESTATE!
Even with inflation rising, Americans came together and agreed that there is no better investment than real estate. If you’re thinking about purchasing a home this year, this poll should reassure you that you are making the right decision...here's why!
In the annual Gallup poll, Americans chose real estate as the best long-term investment for the 8th year in a row.
If you’re thinking about purchasing a home this year, this poll should reassure you that you are making the right decision. Even with inflation rising, Americans came together and agreed that there is no better investment than real estate.
FAQ: Why Is Real Estate a Great Investment During Times of High Inflation?
With inflation reaching its highest in 40 years, it’s more important than ever to understand the many financial benefits of owning a home or property. Prices are rising across the board, including goods, services, housing costs, and more. As we mentioned previously, when you purchase your home, you lock in your monthly housing payments, blocking yourself from increasing housing payments (Captain America style).
James Royal, Senior Wealth Management Reporter at Bankrate, explains:
“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 don’t have that same benefit of being shielded by Captain America, and you aren’t protected from increases in your housing costs, especially rising rents...RUN! Read our last blog on why it may be time to break the lease streak and buy a home.
When you own a home, your house is an asset that typically increases in value over time, even during inflation. Why is this? It is because as prices rise, the value of your home does, too and that makes buying a home a great purchase during periods of high inflation, eh hem, what are you waiting for?
Natalie Campisi, Advisor Staff for Forbes, notes:
“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.”
The bottom line is, housing truly is a strong investment, especially when inflation is high, like today. When you secure your mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time.