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<\/p>\n","protected":false},"excerpt":{"rendered":"BY ANNA & MICHELLE<\/p>\n
In inflationary times, currently the highest in 40 years, the purchasing power of your money diminishes each day; essentially, buying you less.\u00a0The biggest threat is to be without capital assets, like a home, that are benefiting from the increase in prices.<\/p>\n
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.\u00a0Used cars are about 35% more expensive than they were a year ago.\u00a0Mortgage rates are near 5% after reaching their lowest of 2.65% in January 2021.<\/p>\n
And then, there is the price of houses.\u00a0CoreLogic reports that home prices increased year over year by 20% in February 2022.\u00a0Their Home Price Index indicates an annual 5% increase in prices from 2014 to 2021.<\/p>\n
For many people, the American dream of owning a home is slipping away.\u00a0Adjusting 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.\u00a0By delaying the gratification of getting everything you want in a home now and making compromises that would allow you to stair-step your way into the \u201cforever home\u201d could be the plan to incrementally reach your goal.<\/p>\n
Owning a home in today\u2019s market, even if it isn\u2019t the ultimate home, provides a significant hedge against inflation.\u00a0Not only is the home appreciating faster than the rate of inflation, the mortgage on the home produces leverage that increases a homeowner\u2019s return on their equity.<\/p>\n
Homeowners have both the home\u2019s appreciation and its amortization working in tandem to increase their equity.\u00a0Money in a bank account or the stock market can\u2019t compare to the potential.<\/b><\/p>\n
Forty thousand dollars invested in a certificate of deposit earning 1% would be worth $42,040 in five years.\u00a0If the same amount was invested in the stock market that earned 6% annually, it would be worth $53,529.\u00a0However, if the $40,000 were invested in a $400,000 home, with a mortgage at 5% for 30 years, that appreciated at 5% annually, the equity would be close to $180,000 at the end of the same five-year period.<\/p>\n
Connect with us and let\u2019s put together a plan to help you benefit from inflation.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
BY ANNA & MICHELLE In inflationary times, currently the highest in 40 years, the purchasing power of your money diminishes each day; essentially, buying you less.\u00a0The 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 […]<\/p>\n","protected":false},"author":1,"featured_media":18110,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[64,38],"tags":[],"class_list":["post-18109","post","type-post","status-publish","format-standard","has-post-thumbnail","category-better-homeowners-news","category-sponsored"],"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/18109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=18109"}],"version-history":[{"count":2,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/18109\/revisions"}],"predecessor-version":[{"id":18114,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/18109\/revisions\/18114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/18110"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=18109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=18109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=18109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}