The Perfect Inflation Hedge
L:et's talk about inflation and how you can protect yourself from it. You’ve heard about how inflation has gone a bit out of control in recent years. From 2020 to 2023, inflation has increased a whopping 18.11%.
If you’ve noticed your dollars not going as far as they used to, you’re definitely not alone. We’re all experiencing the effects of inflation and the way it gradually decreases the value of our money. Obviously, we want to avoid inflation as much as possible because it makes our money and investments worth less in the future compared to today.
That’s where real estate comes in. Real estate is a smart investment and a great way to hedge against inflation because property values tend to appreciate over time and often surpass inflation. This is one of the best things about real estate. Not only is it a smart investment that will help you grow your wealth, but it also helps you protect the value of your initial purchase.
If you own a home, all of the money that you put into that investment will retain its value because the value of the home will increase–as a result, you’re not losing the worth of your money to inflation like you would with a standard savings account or other investments.
Real estate is also a smart investment because property values tend to appreciate more than inflation, so you’ll be making money on your investment rather than just holding your money’s value. This protects your purchasing power as a property owner and real estate investor.
Plus, if you have a fixed-rate mortgage, which is the most popular kind of mortgage, your monthly payment will stay the same even if inflation increases. That’s a far cry from renting where you know your rent is going to go up 5-10% every time you renew your lease.
Real estate gives you the opportunity to enjoy stable, consistent housing costs in the midst of a changing economy. In addition, you’ll be building equity, growing your wealth, and protecting yourself from inflation while having a secure place to live. Buying a home is more than just a life milestone; it’s a strategic move and investment in your financial future.
If you’re ready to protect yourself against inflation all while building equity and making a smart investment reach out. We’ll talk about everything you need to know to make an informed decision and start your real estate journey.