Are you feeling the pinch of high inflation in your daily life, with rising prices on groceries, gas, and other essentials? As a renter, you may be particularly affected by increasing rental costs. With the added concerns of a possible recession, you might be questioning if it makes sense to buy a Panama City Beach home in today’s market. Well, here’s the short answer: it absolutely makes sense. Here’s why.
Homeownership serves as a protective shield against the mounting expenses brought on by inflation.
Freddie Mac explains how:
Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.”
While rental prices often increase over time, a fixed-rate mortgage payment remains consistent throughout the duration of the mortgage, which usually spans 15 to 30 years. In a world where the costs of various necessities are on the rise, maintaining a stable Bay County housing payment becomes increasingly crucial.
Renting is the alternative to homeownership, but it comes with a drawback: rents often align with inflation. As inflation rates rise, so do your monthly rental payments (see graph below):
By opting for a fixed-rate mortgage, you can shield yourself from future rent increases. Inflation continues to be a significant factor, and when your lease is up for renewal, property managers may raise your rent to counter its effects. In fact, a recent survey revealed that 73% of property managers have plans to raise rents in the next two years.
One of the significant advantages of homeownership during times of economic uncertainty is the stability it offers for your largest monthly expense. By choosing to rent, you miss out on this advantage and expose yourself to potential increases in costs over time.
Bottom Line
In times of high inflation, having a stable housing payment becomes increasingly crucial. Don’t miss out on the opportunity to learn more and embark on your Panama City homeownership journey. Contact Saltwater Real Estate of PCB and get started today!