If you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.
In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below):
Why Is Roseville Real Estate a Great Investment During Times of High Inflation?
The best way to protect yourself from inflation is by purchasing your home. When you own, it’s like having a cash cow that never needs feeding!
The benefits of owning a home in Roseville CA are numerous: Not only do homes gain value over time and provide stability in an unstable world (with rising costs), but homeowners also enjoy lower monthly payments because their fixed expenses have been covered already – all without putting anything down on deposit or paying private mortgage insurance (PMI).
With inflation reaching its highest level in 40 years, it’s more important than ever to understand the financial benefits of homeownership. James Royal, Senior Wealth Management Reporter at Bankrate, explains it like this:
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“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.”
If you’re renting a home in Roseville, CA, you don’t have that same benefit, and you aren’t protected from increases in your housing costs, especially rising rents.
History Shows During Inflationary Periods, Roseville Home Prices Rise as Well
As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes buying a home in Roseville CA a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbes, notes:
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“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”
BOTTOM LINE
Roseville and Sacramento area housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, 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, let’s connect today.