It seems like everything is more expensive. Whether I’m buying gas or eggs, it’s obvious that inflation is on the rise, and it's making it tough for everyone to make ends meet. If you're a renter, you're probably feeling the pain of rising rent prices. And if you're thinking about buying a home, you may be wondering if it's still a good investment.
The good news is that homeownership can actually protect you from the rising costs of inflation.
•A fixed-rate mortgage can stabilize your monthly housing costs. Unlike rents, which tend to rise with time, a fixed-rate mortgage payment is predictable over the life of the mortgage (typically 15 to 30 years). This means that even if inflation goes up, your monthly mortgage payment will stay the same which offers incredible peace of mind.
•Homeownership can help you build equity. As you make mortgage payments, you'll build equity in your home. Equity is the difference between the value of your home and the amount you owe on your mortgage. Over time, your equity can grow significantly, which can provide you with a financial cushion in case of an emergency or provide an opportunity for investment.
•Homeownership can give you tax breaks. There are a number of tax breaks available to homeowners, such as the mortgage interest deduction and the property tax deduction. These tax breaks can help you save money on your taxes each year.
Overall, homeownership can be a good investment, especially during inflation. However, it's important to weigh the risks and rewards before making a decision.
Check out the up-to-the-moment Sedona Real Estate Update and give me a call if you’d like to learn more about how to move forward on the pathway to home ownership. 928-821-1138