What Inflation Does To Real Estate
This is how inflation can truly benefit homeowners and investors.
Inflation has been in the news a lot lately. The subject usually carries a negative connotation, and for good reason. We don't want things to cost more, especially if we're not making any more money as prices rise. However, when it comes to real estate, inflation isn't a bad thing—investing in real estate is actually a good way to hedge against inflation. This is because inflation also causes home prices to increase.
If you own a home with a mortgage, your mortgage payment is fixed, but the value of your house is going up, so you're building equity. The price of your house going up isn't costing you more every month if you're staying put. Rents usually rise during periods of high inflation, which benefits investors. Inflation can be a positive thing for people who own real estate, but it can be problematic for prospective buyers. Home prices and the cost of the building materials will go up.
If you have any questions, feel free to reach out to me by phone or email. I would love to hear from you.