You are most likely experiencing the effects of high inflation on a daily basis due to the fact that prices for a variety of goods, including food, petrol, and other items, have increased. As a result of the ongoing increase in rent, you are probably going through it rather often if you are a tenant. Because of all of these increased prices plus the possibility of a recession, you may be questioning whether or not it is still rational to purchase a property in the current market. To answer your question in a nutshell: yes, it does. I'll explain why.
The growing prices that are caused by inflation are actually protected from you when you own your own home.
The following is an explanation provided by Freddie Mac: "Not only will buying today help you begin to build equity, but a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case over the past few years."
In contrast to rent, which has a tendency to increase over time, the payment for a mortgage with a fixed rate remains the same during the duration of the loan, which is normally between 15 and 30 years. In addition, when the cost of almost everything else is going up, maintaining the stability of your housing payment is of utmost importance.
You may safeguard yourself against potential increases in the rent by securing a mortgage with a fixed interest rate. Because inflation is still rather high, your property management may choose to raise your rent when it is time to renew your rental agreement. This is done to compensate for the effect that inflation has had. Perhaps this is the reason why 73% of property managers, according to a recent poll, want to increase rents over the course of the next two years.
When inflation is significant, it is extremely crucial to have a housing payment that is consistent. Send me a direct message if you are interested in learning more and getting started on your path to homeownership right now.