Since the pandemic, inflation has been rising at a rate that we haven’t experienced since the 80’s. With global shutdowns throughout the country, production has slowed down while demand has increased which is what is affecting the rate of inflation. With the pandemic continuing, inflation is expected to continue to rise, so what can you do to protect yourself?
For years, real estate has acted as a hedge against rising inflation for many people. Rental income increases with the property value of a home, and property values rise with inflation. While property value and inflation rose, mortgage rates remained fixed. Thai means that you can pay the same amount on your mortgage every month while the property value increases and you can sell for more than what you bought the home for!
As of right now the real estate market is greatly benefiting sellers. In 2022 it is predicted that there will be an almost 7% increase in home sales and a near 3% increase in appreciation. With inflation continuing to rise, consider investing in real estate in order to protect your finances.
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