Is it Possible to Hedge Against Inflation by Buying a Home? | Monday Minute

With inflation rising to an all time high since the 1980’s, a lot of buyers are concerned on how this will affect them. But what if I told you that buying a home right now can help you hedge against inflation?That’s right.  Generally when inflation hits, it affects the prices of everything, from goods and services, to home prices, rental rates, and even mortgage rates.  So if you have been thinking about buying a home and are concerned about inflation, here are 3 reasons that buying a home can save you money in the future.

1. You can lock into a low, fixed rate mortgage.  Right now, mortgage rates are at an all time low, so if you lock in now, you can avoid higher interest rates that typically will follow due to inflation.

2. Protect yourself from rising rents.  As inflation rises, so will your rent.  However, homeowners that are locked into a mortgage have fixed costs and will be shielded from whatever changes may happen in the market.

3. Gain equity over time.  Real estate is one asset that becomes more valuable over time. Even as inflation rises, your asset will be increasing in value.

Whenever faced by inflation, you will often notice that the wealthiest investors are always putting their money in real estate.  So why not take a page out of their book and hedge against these inflationary times.If you are interested in buying a home and want to learn what is the best way to get started, give us a call.  We look forward to helping you.