Well? Is real estate a good investment, Sam Abbott Sells Homes? Hmm. Well, let Sam Abbott Sell Homes answer the first question posed by the title… Sam Abbott Sells Homes. Yes, that’s the answer to the above question. I said it. BUT, is it possible that Sam Abbott Sells Homes was wrong? It’s happened once before! Let us see…
In a recent poll, homeowners chose REAL ESTATE as the ideal long-term investment. But why? How? Believe it or not, this isn’t the first time they’ve elected the old home ownership bit as numero uno either. Real estate been number one on this poll for the past eight years, and it’s growing more and more to be considered the best long-term investment:
Better than stocks? Jeez. Guess it’s a good thing for you and me though, eh? Me being the one selling homes and you being the one owning them, yeah? Oh, and hey! If you are considering buying a home this year, this should make you feel good. Because let’s face it, even when the cost of living is rising (like it happens to be… right now), people in the United States at least agree that real estate is the ideal thing you can have your hard earned life savings tied up in!
But WHY Is Real Estate a Solid Investment While The Cost of Living is Increasing?
With inflation getting to the high point of the last 40 years, it is now more important than it ever has been to understand the financial advantages of owning a home. Increasing inflation means that prices are going up across the board—not just for homes. We’re talking products, services, home-related expenses, and more. But with a home that you’ve purchased, you tie down your monthly homeownership expenses (some of them anyway), protecting yourself from increasing housing payments. Someone who knows even more than me AND works at Bankrate, said it like this:
“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 happen to be a person who’s renting, you won’t have the same benefit, and you’re not protected from the jacking up of your rents and other home-related expenses.
Historically, Home Prices Rise During Times of Increased Inflation
Dear Homeowner, your home is an asset that usually increases in value over an extended period of time, and this is true even during inflation. It’s because, as prices rise on everything else, your home’s value does, too. This makes buying a home a great protection during these periods of increased inflation. Someone who may be smarter than Sam Abbott Sells Homes, and who also works at FORBES, says:
“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
It appears that homeownership actually is a sound investment, and this is never more true than when inflation is up. When you tie down a mortgage, you’re protecting yourself from housing cost increases, AND (the coolest part) you own something that usually increases in value over extended periods of time. If you are curious about how we’re helping buyers buy homes without regret and remorse in history’s most competitive real estate market, reach out today and we’ll tell ya! Until then, stay safe AND stay hydrated, y’all!