Is Now The Right Time To Buy?
If you are interested in becoming a homeowner, then there is no doubt you have wondered when the best time to buy would be. You have undoubtedly seen how inflation is affecting your daily life. Everything from gas to a movie ticket has gone up in price. Inflation is at a 40-year high, and it is also affecting the housing market. This means that house prices are going up for those who want to buy houses, and the rent cost is also rising. So, what is the answer to the question? Is now a good time to buy? The answer is: Yes. Let’s explore some reasons why homebuying can protect you from inflation.
#1 Rent Only Goes Up
If you believe you should wait out the market and continue to rent, then you are not taking a critical factor into account: rent always goes up. The price of your rent will usually keep up with inflation. Your rent will generally go up each year. This is in contrast to your mortgage. Once you purchase a home and get a fixed-rate mortgage, you do not have to worry about the mortgage going up. The interest and taxes may go up, but not the mortgage itself will not. You can avoid the increasing cost of rent by buying.
#2 Save Money On Your Most Expensive Bill
Your home is generally your most significant monthly expense, so it is the expense that you want to lower and stabilize the most. When you have a mortgage you can afford, you do not have to worry about this expense getting out of control. Even if other budget items go up due to inflation, you know that your most significant payment is under your control. If you are still looking at one of the homes for sale in LA, you should ensure that the mortgage will be affordable before making the purchase.
#3 Home Appreciation Generally Outperforms Inflation
Ever since the 1970s, home appreciation has increased faster than inflation. This means that once you buy a home, its value will increase over time and create equity for you that will increase faster than the inflation rate. Your net worth will grow above and beyond inflation due to your savvy home purchase, so you protect yourself from inflation when purchasing a home.
Get Out There and Buy
Now is the best time possible to buy a home. Some individuals believe they can wait until home prices go down. Still, according to statistics, the cost of homes will only go up, so the wait is in vain, instead of basing your purchasing decision on the opinion of family and friends. Do your research and look at the facts. Historically, buying a home has proven to be a great way to hedge against inflation, and the cost of purchasing a home will most likely not decrease. Buying a home is an important decision that should be taken after considering all pertinent factors, but don’t get caught up in analysis paralysis. Get out there and buy. There is no time to waste.