Inflation: What does that mean for me?
Inflation: What does that mean for me as a home buyer and investor?Verify my mortgage eligibility (Mar 23rd, 2023)
Inflation is an economic phenomenon that affects us all. It refers to the persistent rise in the general level of prices measured against a set standard, such as the Consumer Price Index. In other words, it's the increase in the cost of goods and services over time.
When inflation occurs, each dollar you own buys less than it used to. This means that you can no longer afford to buy the same amount of goods or services that you could before because prices have increased. Fortunately, for most people, wages also usually increase with inflation so that the net effect may not be as severe.
However, inflation does have both positive and negative effects. On the positive side, it can encourage economic growth by incentivizing businesses to expand their operations if they are able to charge for products at higher prices and get higher rates of return on their investments.Verify my mortgage eligibility (Mar 23rd, 2023)
This is great for real estate investors who have properties that they lease out to tenants who need to rent.
The negative effects of inflation affect the consumers since their purchasing power diminishes (prices increase), and the cost of borrowing debt increases (higher interest rates).
Many investors who can afford the payment can successfully take advantage of this opportunity to purchase real estate assets to protect the value of their money, since real estate assets typically appreciate in value over time.Verify my mortgage eligibility (Mar 23rd, 2023)
Something to keep in mind…
Rates are not headed in the right direction for those who do not take action.Verify my mortgage eligibility (Mar 23rd, 2023)
So don't wait to figure things out on your own.
Give us a call today at 949-243-7900 so we can help you navigate your real estate investment decisions and provide you with the best mortgage and financing options available to continue to grow your real estate investment through leverage opportunities. The best investors prepare ahead of time, and we are here to help!Show me today's rates (Mar 23rd, 2023)