Real estate has gotten a bit of a bad reputation as an investment over the last couple of years. Many people have decided to rent because they believe real estate is a bad, volatile investment.
Granted, renting has its benefits – mainly flexibility. If you are not able to commit to living in a given area for more than five years, you probably should rent but if you plan on settling for longer you should consider homeownership as a valuable investment and a hedge against inflation.
Buying real estate now is attractive because it is affordable and can be financed at favorable terms (chiefly low rates). It doesn’t just make sense to buy but you may not want to get caught without real estate when inflation sets in.
As a homeowner, if you have a fixed-rate mortgage, you have stopped the progress of inflation on one of the biggest items in your personal budget: housing expenses – you are not subject to rental increases like a renter. You also get some tax benefits when you buy residential real estate. As a home owner, you will still have to pay property taxes, insurance and maintenance costs, but those are likely to be significantly less costly than rent thirty years down the road when you have paid off your mortgage and own your home.
The buzz is that inflation pressures are real – google it.
We are not economists, financial advisors or CPAs – please check with reliable sources, we can refer you to the appropriate professionals.
Kerstin G. Brooks
Brooks & Heinze Team
www.propertyinseattle.com
Kerstin G. Brooks, Broker 