How Homeownership Can Help Shield You From The Effects Of Inflation

In these uncertain times, it can be tough to think about rising rent and home prices. But what if there was a way to fix your monthly payments in advance, regardless of how high inflation and rent prices might go? Locking in a comfortable mortgage rate might just be the answer you're looking for. Continue reading to learn more about how securing an attainable monthly payment can help shield you from some of the effects of inflation.

Before we discuss the benefits of homeownership, let's first take a moment and review the state of the housing market.

Ongoing inflation hurts more than just your grocery budget – Rent is up across the board.

Anyone who's been paying attention to the economy knows that inflation is on a severe incline and shows no signs of slowing down. The cost of living is rising, and wages aren't keeping up. And if you're renting, you're probably feeling the pinch even more. That's because rent is one of the many things subject to inflation. As the cost of living increases, so does the cost of renting. A recent report showcased how rental prices have increased 149% since 1985. Not knowing how much your landlord may increase your rent in the future is uncomfortable and leaves little room to plan ahead for your future. Homeownership allows you to keep the same monthly payment for the term of your loan.

Soundbuilt is making buying a new home more attainable than ever with our current promotions.

If you’ve thought about buying a home in the last three years, you know the housing market has been full of bidding wars and limited inventory. However, you won’t find those gimmicks here; our current promotions offer buyers our most competitive prices. Thanks to connections with our premier lenders, we can provide rates starting two full points lower than the current average. This is welcome news for home buyers struggling to find attainable housing in the Western Washington area.

Homeownership allows you to build your net worth and begin to create generational wealth

Owning a home is usually seen as a good investment, and for the most part, it is. You have the opportunity to build equity in your property, and if you live in an area with appreciating property values, your net worth can grow exponentially. But there's more to it than that. Homeownership also gives you the chance to build generational wealth. In some cases, you can pass your home down to your children, which can help them get a leg up when they're ready to start their own families. And if you can pay off your mortgage before you retire, you'll have even more resources to leave to your heirs.

You're locking in your monthly expenses, which means you won't have to deal with inflation-related rental hikes.

A fixed-rate mortgage is a guaranteed way to keep your monthly payment from rising. With this type of loan, you can rest assured that even if rental prices increase by 10% next year and more in the years after that, as has happened many times before, your mortgage payments will remain the same. This means there’s no chance whatsoever that those pesky rental hikes will ever have you worried again.

Real estate is an appreciating asset which means you can have the potential to make a profit in the future.

Real estate is an appreciating asset, which means that it has the potential to increase in value over time. So if you're considering selling your house in the future, you may see a profit.

Enjoy the tax benefits that come along with home ownership

We typically don’t think about the need for tax deductions until April rolls around, but being a homeowner comes with some pretty fantastic benefits. The IRS offers quite a few tax breaks to help offset the cost of buying and owning a home. You can deduct the interest you pay on your mortgage and your state and local property taxes. Plus, if you pay discount points when you take out your mortgage, you can deduct them too.

If you put less than 20% down at the time of purchase, it’s likely that you’re also carrying private mortgage insurance (PMI), that's deductible too. If fact, you can deduct your VA loan funding fee, USDA loan guarantee fee, and FHA loan up-front mortgage insurance premiums.

If you’re dreaming of home ownership, we’re here to help you make it a reality

Now, let's discuss how to make homeownership a reality. The first step is joining our VIP priority list and completing an easy pre-qualification with one of our premier lenders. This can be as simple as a 10-minute call or submitting an online form and will give you an idea of how much money you'll need to borrow and what interest rate you'll be paying. When you meet with our concierge team,
you’ll collaborate to decide upon your desired floor plan, homesite, and option choices.

Final Thoughts

Owning a home is one of the most intelligent financial decisions you can make. Not only does it help to create a sense of stability in an uncertain economy, but it also offers tax breaks and other benefits that can save you money in the long run.

If you’re ready to take the next step, reach out to the concierge team today. We’ll work with you to find a home that fits your lifestyle to help you achieve your homeownership dreams!

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