Did you know that real estate is one of the best hedges against inflation? Even though inflation is starting to come under control, it’s still a big issue for most Americans. One of the biggest impacts on the average American is rent costs. Rent has been flat for a bit, but it’s starting to rise again. In June 2024, rents went up by 3.5%, the highest increase in about a year.
This is a great opportunity to talk to renters in your community about how they can get ahead of rising rental prices by buying a home.
Here's the message:
"Hey guys, you might not have heard, but rent prices have gone up 3.5%, the highest in over a year. Because of that, you might want to start considering buying a home. Yes, interest rates are a little higher than we'd like them to be, but when you buy a home, as long as you can make that payment, it stays stable for the next 30 years. The only things that might increase are your taxes and interest, but your core payment remains the same.
Imagine not buying a home and your rent goes up 3% each year. Over three to four years, your rent will increase by 10%. Over ten years, it will be up dramatically from what you’re paying today. But if you bought a home, your payment stays stable. That’s why homeowners are often shocked at how low their payments are compared to current rent prices.
Here's the even better news: we expect interest rates to come down. They might not return to the 2-3% range, but they will decrease. If interest rates drop significantly, you can refinance and potentially lower your payments even further.
There are many advantages to buying a home. I'd love to explore what that looks like for you. I know one of the biggest challenges is the down payment. We can find low down payment programs and opportunities where sellers contribute towards your closing costs and down payment.
Give me a call. I'd love to talk to you today."
That’s the message you need to be putting out. There are opportunities in the market to freeze your payment for the next 30 years if you buy a home, which is the best hedge against future inflation.
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