OWNING A HOME & INFLATION

You’re probably feeling the impact of high inflation every day as prices have gone up on groceries, gas, and more. If you’re a renter, you’re likely experiencing it a lot as your rent continues to rise.

Between all of those elevated costs and uncertainty about a potential recession, you may be wondering if it still makes sense to buy a home today. The short answer is – it does. Here’s why.

Freddie Mac explains how:

“Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.”

Unlike rents, which tend to rise with time, a fixed-rate mortgage payment is predictable over the life of the mortgage (typically 15 to 30 years). And, when the cost of most everything else is rising, keeping your housing payment stable is especially important.

The alternative to homeownership is renting – and rents tend to move alongside inflation. That means as inflation goes up, your monthly rent payments tend to go up, too (see graph below):

A fixed-rate mortgage allows you to protect yourself from future rent hikes. With inflation still high, when your rental agreement comes up for renewal, your property manager may decide to increase your payments to offset the impact of inflation. Maybe that’s why, according to a recent survey, 73% of property managers plan to raise rents over the next two years.

Having your largest monthly expense remain stable in a time of economic uncertainty is a major perk of homeownership. If you continue to rent, you don’t have that same benefit and aren’t as protected from rising costs.

Bottom Line.... A stable housing payment is especially important in times of high inflation. Ready to begin your homeownership journey? Reach out to one of our local real estate experts and mortgage advisors today to get started. If you need a referral, please don’t hesitate to reach out.

Source: Keeping Current Matters

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Beth Caster is an amazing REALTOR® and person! She always gave us great advice and after working with her for awhile, she always seemed to know what houses would be the best fit for us.Beth was always on time professional and knowledgeable but best of all friendly, caring and attentive to all of the small details that made the process less stressful.”

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When decorating your home, think about the type of mood you want to create for family members and guests. Colors have profound psychological effects and most people tend to respond to them in similar ways, although different shades may evoke different emotional responses. In general, lighter colors can make a room feel brighter and larger, while darker colors are warm and make a room feel more intimate.

Blue evokes feelings of security, stability and order. Warm shades of blue can be soothing and can make people feel comfortable, but darker shades can elicit feelings of sadness. Green is a refreshing color that has a calming effect, which makes it a good choice for an area where people socialize, such as a living room or family room. Green also pairs well with many other colors, giving you a wide range of design options.

Red is visually and mentally stimulating. It’s a good color for main living areas where you want to encourage people to socialize, but it may be hard to sleep in a red bedroom.

Orange is a vibrant and energetic color that evokes feelings of happiness. It can be an excellent choice for areas where people gather to socialize, but the energy associated with orange may not make it the right color for a bedroom.

color that can make a room look inviting. People may associate yellow with spring or fall, depending on the shade. Although yellow can make a room feel welcoming, it can elicit negative emotions when used in large amounts.

Brown can make a living room, dining room or bedroom feel cozy. Since brown is a mixture of all three primary colors, it works well with nearly any other color. Beige can produce a calming effect. It can be used as a primary color, or as an accent color in furnishings, and can be paired with a variety of other colors.

White can make a room feel fresh, light and clean. Since it’s a neutral color, white can be combined with nearly any other color to produce a desired emotional effect.

Don’t try to incorporate too many colors into a single room’s design. That could make it feel cluttered and emotionally overwhelming.

Your color options for flooring and furniture will be more limited than your options for paint colors. If you choose the furniture and flooring first, that will make it easier to select a paint color.

Don’t forget about the ceiling. If the ceiling is a lighter color than the walls, the ceiling will seem higher. If the ceiling is darker than the walls, the ceiling will seem lower and the room will feel cozier.

Look at home decorating magazines, websites and blogs for ideas and pay attention when you visit the homes of family members and friends. You never know when you might see something that inspires you.

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