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Your Hedge Against Inflation

Reasonably stable mortgage payments

As you know inflation occurs annually, so if you were renting a place to live you can expect your rent to increase regularly. If the annual inflation rate was 2% and you rented for 25 years, the total inflation would increase by 50% so your rental payment would dramatically increase. When you purchase a home, your mortgage payments stay within a certain range for the whole term of the mortgage.

Excellent Investment vehicle

Price appreciation in real estate has been excellent for the last few decades. History indicates that home ownership is a sound investment over time. Owning your own home is similar to a savings account. Every month a portion of your payment is applied towards the principle and eventually the mortgage will be paid giving you clear title to the property.

 

 

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