Challenges of Homeownership Amid Record Inflation and Rising Costs
Record inflation raises questions about the viability of homeownership as an investment due to rising home prices outpacing incomes. Homeowners face increasing costs in property taxes and insurance, with some struggling to meet monthly payments. Tips include understanding all associated costs, leaving room in the budget for unexpected expenses, and exploring options such as government programs, loan modifications, and changing insurance providers.
Key Points
- Homeowners spend more than 30% of income on housing costs
- Property taxes and insurance costs can significantly rise with home value appreciation
- Tips for homebuyers include understanding all costs, leaving room in budget for surprises, and exploring assistance programs
Pros
- Accumulation of wealth from home ownership over time
Cons
- Rising home prices outpacing incomes
- Increased costs in property taxes and insurance