Historically the Bay Area (for the most part) is an expansive place to buy your own home.
A combination of three important factors creates a rare opportunity, for home buyers, to buy their home:
1. Low interest rates
2. Low prices
3. Buyers market (which means the buyer has the upper hand in the negotiations).
Why these trio creates a good opportunity?
Because the government is currently printing money, as means to fight current economic times, it is very likely that the US will go into an inflation.
When inflation will start picking up pace, prices will go up on everything: gas, milk, stamps, services, etc. One thing will not go up – your mortgage.
This means that the house you had bought for $450,000 will now be worth 1.5 times more, or $675,000, but your original mortgage of $360,000 will stay the same!
One way to “insure” or protect yourself against inflation is to buy a home, preferably with a mortgage.
Should you buy or not?
Protecting against inflation is not a reason to buy. But if you are thinking about buying your home, you may want to take this into consideration – it’s very powerful financial aspect!