Here’s why the best way to beat back inflation is to own a home.

If you’re a renter, you’ve probably heard about rents increasing by the end of 2021. In fact, your rent may have already gone up. Today I want to talk about why that is and explain what you can do about it. 

The main reason why rents are increasing is because of inflation. When COVID hit, a lot of money was pumped into the economy, and while that helped people struggling with the effects of the pandemic, it also drove up inflation. The truth is, it’s not just rent; pretty much everything has become more expensive. 

“When you own your home, equity increases, not your monthly payment.”

If your rent has increased in 2021, it will probably increase in 2022, 2023, and so on into the near future. Fortunately, unlike with other costs, there’s a solution to increasing rent payments: buying! Some people enjoy the flexibility of renting, but it’s costing them a lot of money in the long run. If you bought a home eight years ago, your mortgage payments would still be the same today. If you rented that same home, your payments would have increased during that time. 

There will be one thing increasing if you decide to buy a home, and it’s not your monthly payment. I’m talking about equity. It’s not guaranteed to go up every year, but in the long run, trends predict you will build equity and increase your wealth. Whether you decide to buy or not, you’re going to have something increasing either way. You need to decide whether you want it to be your equity or your rent. 

If you’ve never taken a look at what you need to own a home, now may be the time. Give me a call or shoot me an email, and I’d love to help you build a plan for homeownership. I look forward to hearing from you.