Andrew Shader Answers an Important Question: Should You Buy a Home with Inflation This High?
Wondering whether you should even consider purchasing a home during the current rate of inflation? According to real estate pro Andrew Shader, there are some key reasons why you shouldn’t feel too deterred by inflation when you’re considering new property ownership.
Very few positives come along with inflation. It feels like everything has gone up in price, from gas to groceries and everything in between. The rising costs of living might make you feel like any major investment is out of the question.
However, this article might make you rethink the value of buying a home despite rising inflation rates — especially if you’re ready to make a move and inflation is the only factor holding you back.
Homeownership Gives Consistency Within Inflation
Inflation can affect the prices of many different things you have to pay for on a yearly, monthly, or even daily basis. However, one thing that inflation can’t touch is your mortgage payment.
For the majority of people, a mortgage payment is the largest single expense they’ll be responsible for in any given month. Having a housing payment that remains consistent despite any changes in inflation (which can affect rental prices at the time of re-signing) can be a massive benefit when it comes to budgeting and financial planning.
Additionally, not only will your mortgage payment stay consistent against fluctuating inflation rates, but the property you own will likely hold its value at a consistent level as well.
In fact, property values tend to rise along with the prices of other goods, while less tangible assets may not see the same increase. This means that inflation could potentially be a positive thing when it comes to your position as a homeowner.
Property Will Always Have Value
Outside of the effects of inflation, one of the most important truths that Andrew Shader encourages his clients to remember is that property always has intrinsic value.
Though the liquid value of the home itself may fluctuate according to a variety of factors, the property on which it sits will keep consistent value and, in many cases, even appreciate in value over time.
Changes in inflation can lead potential home buyers to feel unsure about the safety of making a large purchase. However, owning an asset with so much intrinsic value can actually be an important piece of insurance against financial struggles in the future, as this asset won’t depreciate the way other types of investments might.
It’s important to keep in mind that ownership of your home can be a significant contributor to peace of mind during uncertain financial times. Though other fluctuations might be out of your control, having a deed in your name and a consistent mortgage payment can bring more stability as you ride out the ebbs and flows of the economy.
Insight into Andrew Shader
Andrew Shader is a Fort Lauderdale-based real estate developer and investor. His strategy revolves around increasing property values by as much as 60% and creating best-case-scenario outcomes for his clients.