How Owning A Boca Home Protects You From Inflation

how owning a home protects you from inflation

If there is one theme to our sociopolitical landscape in the last 2 years, it's been inflation. It has affected everything from the price of bread to the success of our Realtors. The federal reserve have acted in suit in response to aggressively surging costs on everything from chicken cutlets to gasoline, cardboard to housing. These increased rates have led to the expected slowdown in the housing market, with some sellers believing it's still 2021, and some buyers far more fearful than they should ever be. As expert Boca Raton Realtors, it's our job to assuage unrealistic concerns while explaining the realities of the market. The answer lies somewhere in the middle. Despite the deliberate market fluctuation leading to circumstances unforeseen in decades, this is no 2008, and the value of Boca Raton Real Estate never indeed loses its worth. We all need a roof over our heads, and owning a home in one of the most desirable locations in the world is a surefire way to guard yourself with 4 walls of inflation-busting investment power. Learn more about how owning a Boca Raton home can secure your place in the ranks of the financially free.

predictable housing payments

Predictable Housing Payments

From March 2020 to March 2023,  rent prices in Florida have increased 45.77%! Other than the inhumane stress this puts on renters, it's a sure endorsement of the consistency of homeownership. If you can, why wouldn't you lock in your mortgage, rather than pay for someone else's? Better yet, there is always the opportunity for future refinancing. If your mortgage payment is $2,500, it will stay that way. As a renter, you are at the absolute mercy of your landlords, who inevitably face the same rising costs you do. In this case, you're trading the responsibility of repairing a dishwasher for the shackles of continuous rent in a market gone berserk.

financial centerpiece

A Centerpiece For Long Term Financial Planning

Outside of the very wealthy, who may have a valuable vehicle or sizable bank account, your home is likely the biggest source of value in your portfolio. While it may not have the liquidity of a cash reserve, it provides housing stability and a physical asset that every human being on earth needs. The same cannot be said for the value of your depreciating assets, the stability of the currency, or the reliability of stock investments. Your home is and should be the anchor with which you build a prosperous future around, and the home base for your goals, dreams, and most peaceful moments.

build equity

Build Equity

Home equity is the percentage of the home you own outright. A HELOC (home equity line of credit) is one of the most powerful financial vehicles available to us, and to many, a glass ceiling that renters fight to shatter through home acquisition. The more you pay off your home, the more equity you can tap into, the more improvements you can make, and the more cyclical your prosperity becomes. For instance, if you own $250,000 in home equity, can make your mortgage payments comfortably, and want to draw $15,000 to remodel your kitchen, you have that power right under your feet. If you don't plan on selling or moving anytime soon, the value of the home ultimately matters little so long as you can draw from its wellspring and finance your life. Responsible homeowners have what is essentially a small loans bank literally at their doorstep. The ebb and flow of equity, value, and credit you can balance via a home is a remarkable power to wield.

hedge against uncertainty

Hedges Against Uncertainties In Life

We don't expect any of our readers to become homeless, and we pray for anyone facing such a terrible dilemma. In many of our most tragic stories, homelessness becomes the nadir of a downward spiral. Whether it be addiction, criminality, mental illness, or a massive financial loss, homelessness is frequently the end product of these terrible events. Thus, it only makes sense that home ownership is a hedge against tragedy. Anyone who's ever gone through a breakup while renting knows as much, and as dark as it seems, these are the realities that we face in life. Having a home means you have the most basic of needs met to survive, succeed, and withstand the inevitable disasters of life. Your home is your rock, your island, your safe harbor, and your last line of defense when life throws its very worst at you.

Want to learn more about Boca Raton Homeownership? Try these two blogs below...

Avoid These 5 Common Real Estate Mistakes | A Day 1 Guide For New Boca Residents

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