Three Good Reasons to Acquire a Property during inflation

With the current inflation, consumers' purchasing power for goods and costs of labor

have been greatly impacted. The value of money is reduced because it cannot purchase the same amount of goods and services as before. Financial experts have shared some ways to protect our savings from further shrinking in value, is to invest in variety of asset classes. One of the more tangible assets is real estate. It is considered a good inflation hedge because there will always be demand for homes, property values increase along with inflation, not to mention the passive income from investment properties.

Three Good Reasons to Acquire a Property during inflation before the mass bidding war starts again. While mortgage rates have not fallen below 6%, there are many credible lenders that are offering solid lending programs ( principal + interest) to lower the monthly mortgage payment. Why is this a good opportunity to leverage while others are waiting?

1. According to recent housing data, inventory is still low but slowly growing, rippling effect to the stabilizing of home prices. “The increase in inventory has been big enough to slow home price increases.” says Danielle Hale, chief economist of realtor.com. 

Slower price growth reflects more affordability on home prices, which results in buyers ability to afford more homes with more options. Not to mention if they’re willing to overlook and compromise a few flaws to land a good bargain. 

2. Many economists believe that interest rates will take longer to decline to the previous 5% or may not even happened again. Refinance in the coming years, but get in before home prices go even higher! When rates go down, demand for homes will increase so as home prices. While some homes are taking longer to sell, this is a good opportunity for buyers to leverage the power of negotiation. “Buyers are more in the driver’s seat than they were just 12 to 18 months ago” says Nick Ron, founder and CEO of House Buyers of America. Sellers are more likely to accept as demand isn’t as frenzy with the current rates.

3. While other homebuyers are still on the fence, get in the market and start building equity. Housing experts have projected that home prices will keep increasing annually due to insufficient supply of housing. Waiting around will only cost you more in the long run. Current homeowners are leveraging their equity growth and home appreciation in value. Homeownership also serves as a hedge against inflation. It guards your assets from shrinking in value.