INFLATION AND HOUSING MARKET IN 2022, Why It’s The Best Time To Buy a Home to Save and Make Money

Why do you think NOW is the best time to buy a home? All the prices are going up during this outrageous inflation. What’s the benefit of purchasing a house amidst this war on prices including rent? How do I save money during inflation? That is what I will be talking about in this video. You don’t want to miss it…this will be a great video for you to watch so stay right there.

Hi everybody. I’m back to talk about inflation and housing market in 2022. In this video, with so much talk around inflation looming on the horizon, we’ll talk about whether you need to buy a home now before you lose your money’s purchasing power or set aside your real estate needs for now?  My name is Lynn Alvarez, your Realtor in the Charlotte area.  At first, I though it doesn’t make sense to buy a home right now because the home prices have gone through the roof. How do you really save or make money during inflation? We’ve got so many questions from home buyers if they need to wait out or buy now while the interest rates are still pretty low.

I hope this video will shed some light especially for those that are contemplating or those that are currently renting. Are you thinking of buying a primary home or an investment property?

If you’re following along with the news today, you’re probably hearing a lot about rising consumer prices. The prime consumer products have gone up so much recently.  And increasing rent in major cities in the country. Gas prices hit a historic high.  It’s crazy!

Real estate is the best investment you can make during inflationary period.  And while home prices aren’t immune from this increase, here’s why inflation shouldn’t stop you from buying a home in 2022.  Aside from stability and security that home ownership offers, there are the 3 things that will benefit you when you purchase a home, whether it’s your primary home or an investment property.

1)      First, real estate Is a good asset during inflation. It is a real asset because the home's value will rise with the inflation rate and in part because it is a leveraged asset. So, with a good interest rate that doesn't change, the amount you pay for your home may not increase although the value of will likely go up at the same amount of inflation and will appreciate faster.

2)      Second, the rising costs for things like food, shelter, entertainment, and other goods and services are increasing and are going to continue to climb throughout 2022. And this is beyond your control. The thing that you can control is the cost of housing. When you buy a home with a 30-year fixed mortgage, you are locked in a fixed monthly mortgage payment for quite some time.  It allows you to be able to maintain the biggest portion of your cost of living and of course, that is housing.  If you rent, you don’t have that same benefit and you won’t be protected from rising housing costs.

3)      And third, owning an investment property or a rental home, generates income. As inflation rises, the costs of goods and services including real estate go up. However, if you can lock in a low-interest, fixed-rate mortgage, then the cost of your rental home which is an appreciating asset will stay the same while the value of your property rises. Thus, generating a passive income for you.

When you purchase a home with 3 bedrooms and 2.5 baths for let’s say $400,000 and you put a small down payment, your mortgage payment that includes tax and insurance will range from $2,065 to $2,100 per month.  With high demand for housing rental, you can easily rent your property between $2,500 to $3,000 per month depending on the area.

If you have extra cash during inflation, where do you want to put your money? In stocks, mutual funds, gold, CDs or bonds?  No. The best investment is in real estate.  While inflation decreases what your dollars can buy, low mortgage rates help counteract it by boosting your purchasing power so you can get more home for your money.  Real estate is typically considered a stable and secure asset that can grow in value over time.

I’d like to hear your thoughts about this video, so leave a comment below.

The best hedge against inflation is a fixed housing cost. That’s why you shouldn’t let it stop you from buying a home this year. Not sure where to start? Let’s connect so you have expert advice and help throughout every step of the homebuying process.  Contact me or my husband, Albert Alvarez if you have any questions about the housing market in 2022.  We are here to help you with all your real estate needs.  Thanks so much for watching and if this video gives you some value, please don’t forget to subscribe to our channel. Just click on our photo to subscribe. If you are relocating to Charlotte, please see the description below to get a free relocation guide.  Thanks so much for watching.  I will see you on the next one. Have a great day!