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If you’re following along with the news today, you’ve likely heard about rising inflation. You’re also likely feeling the impact in your day-to-day life as prices go up for gas, groceries, and more. These rising consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.

If you’ve been thinking about purchasing an RCFE home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how RCFE homeownership can help you combat the rising costs that come with inflation.

 

RCFE Homeownership Offers Stability and Security

Investopedia explains that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both lease rates and RCFE home prices are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in RCFE homeownership.

Buying an RCFE home allows you to stabilize what’s typically your biggest monthly expense: your RCFE premises cost. If you get a fixed-rate mortgage on your RCFE home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, says:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.” 

So even if other prices rise, your RCFE housing payment will be a reliable amount that can help keep your budget in check. If you lease, you don’t have that same benefit, and you won’t be protected from rising housing costs.

Use Home Price Appreciation to Your Benefit

While it’s true rising mortgage rates and RCFE home prices mean buying an RCFE home today costs more than it did a year ago, you still have an opportunity to set yourself up for a long-term win. Buying now lets you lock in at today’s rates and prices before both climb higher.

In inflationary times, it’s especially important to invest your money in an asset that traditionally holds or grows in value. The graph below shows how home price appreciation outperformed inflation in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):

 

So, what does that mean for you? Today, experts say RCFE home prices will only go up from here thanks to the ongoing imbalance in supply and demand. Once you buy an RCFE, any home price appreciation that does occur will be good for your equity and your net worth. And since RCFE homes are typically assets that grow in value (even in inflationary times), you have peace of mind that history shows your investment is a strong one.

Bottom Line

If you’re ready to buy an RCFE home, it may make sense to move forward with your plans despite rising inflation. If you want expert advice on your specific situation and how to time your purchase, call Michelle J. London, CPA TODAY at 949-397-4506 for your FREE, no obligation consultation.   

If you are considering selling your RCFE, call Michelle J. London, CPA TODAY at 949-397-4506 for your complimentary RCFE valuation.  She will analyze your RCFE home and business, provide you with price guidance, and create an action plan for selling your RCFE for top dollar.  We will formulate a marketing strategy specially tailored for your specific needs.

Let our RCFE Resource team of professionals bring proven expertise to help you get the highest sales price for your RCFE or ARF