If you're following the news today, you've probably heard about the rising inflation.

You're probably also feeling the impact on your life everyday life as the price of gas, groceries and much more rises.

These rising consumer costs can hurt your wallet and make you re-evaluate any big purchases you have planned to make sure they are still worthwhile.

If you are thinking of buying a house this year, you're probably wondering if should continue on this path or does it make more sense to wait.

Although the answer depends on your situation, here's how home can help you combat the rising costs that accompany inflation.

Home ownership offers stability and security

Investopedia explains that during a period of high inflation, prices rise across the board. This applies to things like food, entertainment and other goods and services, even housing.

Both rental prices how much house prices are on the rise.

So, as a buyer, how can you protect yourself from rising costs? The answer lies in home ownership.

Buying a house allows you to stabilize what is usually your biggest monthly expense: the cost of housing.

If you can get a fixed-rate mortgage on your home, you block your monthly payment for the duration of your loanusually between 15 and 30 years.

James Royal, Senior Asset Management Reporter at Bankrate, says:

"A fixed-rate mortgage allows you to keep most of your living expenses with the same payment. Sure, property taxes will rise and other expenses may increase, but your monthly housing payment remains the same." 

So even if other prices go up, your housing payment will be a reliable figure that can help keep your budget under control.

If you rentYou won't get the same benefit and you won't be protected from rising housing costs.

Use house price appreciation to your advantage

While it is true that the increase mortgage rates e house prices mean that buying a house today costs more than it did a year ago, you still have the opportunity to set yourself up for a long-term win. Buying now allows you to lock in today's rates and prices before both rise further.

In times of inflation, it's especially important to invest your money in an asset that traditionally maintains or grows in value. The graph below shows how house price appreciation has outpaced inflation in most decades since the 1970s - making home ownership a historically strong hedge against inflation (see the graph below):

So what does this mean for you?

Today, experts say that house prices will continue to rise because the price pressure stems from an ongoing imbalance between supply and demand.

After buying a house, any house price appreciation that happens will be good for your assets and its net equity.

And since houses are typically assets that grow in value (even in times of inflation), you can be sure that history shows that his investment is strong.

How can buying a property in the United States protect me from inflation in Brazil?

If you don't live in the United States, you may be wondering what this post has to do with you - after all, your home is not here, but in Brazil.

However, historically, Brazilian inflation loses out to the appreciation of the American currency, which means that when you buy a house as an investment in the United States, in addition to having an income in a strong currency, you are protecting your assets from inflation in Brazil.

Another great advantage of investing in real estate in the United States is the possibility of making this investment on a leveraged basis, i.e. financing the property. This is only possible because real estate interest rates in the United States tend to be lower than the annual return on real estate.

Since the financing bank gains nothing from the appreciation of the property, the real estate appreciation will boost your assets even more. Imagine the scenario where you financed your investment by giving only 1/3 of the value of the property and that after a year the property has appreciated by 5%, your equity in this example will have appreciated by 15%.

See an article with more arguments:  3 charts that show we're not in a real estate bubble If you're ready to buy a house, it may make sense to go ahead with your plans, despite rising inflation. If you want expert advice on your specific situation and how to time your purchase, let's connect.

Any doubts?

Now that you know a little more about how buying a property in the United States can help you escape inflation, you can consider investing in vacation homes in Orlando. To make the most of all the tips we've given you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.

In this article, we've covered the topic of the behavior of the real estate market during recessions because it's interesting for those looking to invest in Florida. If you would like to read more content like the one in this article, just stay tuned to our blog.


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