In an annual poll conducted by Gallup, investing in real estate was found to be the best long-term investment for Americans. This is not the first time real estate has been on the top of the list either. Real estate has taken the top spot for the past eight years, and it is consistently gaining traction.
If you’re thinking about buying a home this year, this poll is here for some reassurance. Even when inflation is on the rise like it is today, Americans agree investing in real estate tops the charts.
Why Is Real Estate a Great Investment During Times of High Inflation?
As inflation continues to be on the rise, now is a good time to consider the financial benefits of homeownership. Rising inflation means prices are increasing. That includes goods, services, housing costs, and more. When you purchase a home, you lock in your monthly housing payments, which helps shield you from increasing housing payments. Senior Wealth Management Reporter at Bankrate, James Royal, explains it as follows:
“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.”
During Inflationary Periods, Home Prices Rise as Well
As a homeowner, your house typically increases in value over time, even during inflation. That‘s because, as prices rise, so does the value of your home. This makes buying a home a great investment during periods of high inflation.
Real estate truly is a strong investment, especially when inflation is high. When you’re set with a mortgage payment, you’re shielded from increasing housing cost, and you own an asset that typically gains value with time.
If you want to better understand how buying a home could be a great investment for you, connect with an experienced real estate partner here at Corken + Company today!