Right now, the cost of goods across several industries is rising. This has caused many to worry about inflation and no longer being able to afford certain items. However, there are some financial moves that people can do right now to hedge against inflation. One of the biggest strategies is investing in real estate. Right now, mortgage rates are low, so it is a good time to secure a real estate investment.
During the last 12 months, the latest Consumer Price Index rose 5%. This was the biggest annual increase since August 2008. When the CPI Rises, it could be an indicator that an inflation is coming.
As inflation occurs, the cost of pretty much everything increases. This also includes real estate. However, that is why investing in real estate right now could be a good move. If you can secure a low-interest, fixed-rate mortgage, the price of your home will stay the same as the value of the property rises.
Here are a few ways in which buying a home right now can help you if we’re heading for a rising inflation:
- As inflation increases, mortgage rates will likely increase as well. Right now, rates are low, making it a great time to borrow money to purchase a property.
- Buying a home now can help you avoid rising rents in the future. With inflation, the cost of everything rises, including rent. However, homeowners are shielded from increased rental prices because their cost is fixed.
- Properties increase in value over time, which makes real estate a good investment during inflationary times.
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AMG International Realty is a global real estate firm specializing in Florida. If you are you looking to buy, rent, or sell in Miami we are here to guide you through every step of the way. From mortgage applications, to finding your dream home and closing the deal. Contact us today!
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