Become a Victim of Inflation or Benefit from It
In inflationary times, currently the highest in 40 years, the purchasing power of your money diminishes each day; essentially, buying you less. The biggest threat is to be without capital assets, like a home, that are benefiting from the increase in prices. Your money buys less gasoline now, than it did a year ago, by close to 50%. Beef prices are up about 20% since last year. Used cars are about 35% more expensive than they were a year ago. Mortgage rates are near 5% after reaching their lowest of 2.65% in January 2021. And then, there is the price of houses. CoreLogic reports that home prices increased year over year by 20% in February 2022. Their Home Price Index indicates an annual five percent increase in prices from 2014 to 2021. For many people, the American dream of owning a home is slipping away. Adjusting your expectations for the perfect home and when you expect to achieve it, can be a legitimate, long-term strategy to making the dream come true