Home Ownership How It Can Protect from Inflation
Home Ownership How It Can Protect from Inflation
Full Video Transcript Below
[00:00:00] Well, Hey, everybody. Alice Lema here. Broker John L. Scott and beautiful Southern Oregon with another edition of the weekly podcast. Today, we're going to talk about using homeownership to shield you from inflation and other nasty things that are going on in the world today. But before we get to that one and give you a quick minute to like the channel give us a thumbs up, please.
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[00:00:36] If you'd like to speak to me personally and privately, you can reach me at 541-301-7980. Now, with that in mind, let's go to the podcast. How home ownership can shield you from inflation and other nasty things going on in the world today.
[00:00:53] So, number one, Some of the concern right now with the hyperinflation and all the uncertainty is should I buy a house right now? Is it really a good idea? Because what if there's going to be another crash? What if the inflation eats up? Blah, blah, blah, worry, worry, worry. Well, here's a chart from KCM keeping current matters, one of my favorite favorite websites. Talk about it a lot. So I want you to see historically from the 1970s.
[00:01:23] Home ownership has been a great hedge against inflation. In fact, the last couple of years it's been phenomenal. And you can see even during the really hard times where we had the housing crisis in the two thousands that would be, you know, the 2006, 7, 8, 9, depending on what part of the country you were in is when it hit you.
[00:01:42] But, you know, even during then it almost kept up with inflation, the rest of the homeownership has exceeded inflation. So historically very safe bet. In fact, a lot of investors move their money into real estate during inflationary times just for that reason. So just wanted to lay the groundwork. Historically home ownership is a great hedge against inflation, and you can turn to the chart from KCM to see what I'm talking about.
[00:02:12] The second thing that home ownership during inflationary times helps you with is protecting you from the vulnerability of being a tenant. Now being a tenant is very Footloose, fancy, free, very easy care lifestyle. But in these kinds of times, you're super vulnerable because especially where we live in Southern Oregon, there aren't many rental units available. We have a shortage, a severe shortage of housing for tenants. So it makes you even more Uber vulnerable and the prices keep going up for rental units because supply and demand, supply and demand super simple.
[00:02:52] So the number two here is homeownership can keep you out of the vulnerable position of being a renter, especially during these very uncertain times. And I think that's really important. Now, some folks are not in a position to own a home by themselves, and that's where you want to go and check out some other videos about ownership with partners, romantic partners, family partners, investment partners, they're all a little bit different.
[00:03:16] They all have pluses and minuses, but is a way group purchasing can help secure an address for you and your people right now, so that you're not tenants. Okay. And not that there's anything wrong with being a tenant. I've been a tenant before, too. I am off and on, but the point is that you're vulnerable even during in good times.
[00:03:38] And right now with all the uncertainty in the world and the hyperinflation, I think you're more at risk. Because landlords are selling, especially in Oregon, they're selling, landlords are selling. They don't want to be landlords right now. We don't have a ton of people jumping back in to replace those investor landlord people.
[00:03:54] So, yeah, I think that's the alarm bell I want to ring is if there's any way possible for you to own a home, do it because it will help protect you from, from all that uncertainty.
[00:04:06] Okay. Number three, buying a home, stabilizes your budget. Well, at least it's supposed to, so yes, taxes and insurance go up. And in our county Jackson county, the taxes are a little high.
[00:04:20] No offense. We love our county, but they're, they're a little high. They go up almost 3% every year. The mortgage itself stays the same. If you get a 30 year fixed, 15 year fixed mortgage, then the only fluctuation is going to be your taxes and insurance and your maintenance. So with that in mind, you can have some predictability in your monthly budget, and that is super important during the good times. Even more important during the uncertain times.
[00:04:49] And when we have hyperinflation, we're spending a lot more on gas. We're spending more on food, we're spending more on heat and, and everything else in our life. At least you have some stability in your biggest bill every month. Providing your own housing. So I'm a big fan of having budgets, stabilizing the budget.
[00:05:11] You'll sleep better. You'll be safer. Economically you'll be more financially secure. So yeah. And in certain times, If you already own a house, buy another one and consider being a good landlord. Gosh, we sure need them. In the meantime, if you're thinking of selling, this is all super important as well, because you want to make sure you put your money into another asset that also is a hedge against inflation.
[00:05:37] So if you're selling and buying another house because you want a place to live. Or you're selling and buying more rentals. Great. If you're not putting your money into real estate, just make sure you check with a financial advisor. Somebody who knows about access asset protection during inflationary times.
[00:05:56] And. Just make sure that you're putting your money in a good place where it won't be at risk. Okay. But I think real estate is a way to go, but I do know that some people put their money in other places as well, hard to believe, but they do anyway, little joke there and that's all we have for today. If you need something, please give me a call.
[00:06:14] Give me a text I'm around all weekend. My number is 541-301-7980. We'll be back again next week. Have a great day. Bye.