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 Turning Houses Into Homes

A Solid Hedge Against Inflation - 5/14/2025

In times of economic uncertainty, real estate stands out as one of the most reliable ways to protect your wealth. Unlike stocks or bonds, real estate is a tangible asset with intrinsic value that retains its worth even during economic fluctuations. Its physical nature provides stability, making it a safe and dependable investment.

Over the past six decades, homes have soared, at an astounding annual compounded growth rate of 5.48%.  In 1963, the average home price was $19,300 and at the end of 2024, the average home price was $501,100.  In parallel, rent has steadily risen at 3.88% annually.  Inflation during the same 60-year period averaged 3.7%.

Historically, property values tend to appreciate over time, often outpacing inflation and preserving purchasing power. This appreciation not only builds equity but also ensures that your investment grows along with or ahead of inflationary pressures. Additionally, real estate investments can generate rental income, which typically rises alongside inflation, providing a steady stream of revenue to offset increasing costs.

For homebuyers, a fixed-rate mortgage offers a significant advantage during inflationary periods. Locking in a consistent monthly payment protects against rising housing costs, allowing homeowners to budget with confidence. At the same time, housing shortages in many markets help sustain property demand, supporting long-term value even when the economy experiences shifts.

Diversifying your investments with real estate also helps reduce overall financial risk. Property ownership adds balance to your portfolio and shields your wealth from the volatility often seen in other asset classes like stocks. Plus, real estate offers tax advantages, such as deductions for mortgage interest and property depreciation, which enhance returns and further mitigate inflation's impact.

Finally, real estate provides a unique combination of stability and growth potential. It is less volatile than many other investments and serves as a long-term store of value, making it a reliable asset during inflationary periods. Whether you're a homeowner or an investor, real estate remains a solid choice for safeguarding your financial future.

Real estate offers a powerful hedge against inflation, combining stability, long-term growth potential, and unique financial benefits. From appreciating property values to tax advantages and fixed-rate mortgage protections, investing in a home ensures your money works for you, even in uncertain economic times. Now is the time to explore how real estate can protect your wealth and provide lasting value.

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Kathy Henne GRI, CRS, OWNER/BROKER REMAX FINEST Piqua, OH Kathy Kathy's passion for real estate knows no bounds. With over 29 years of experience as an agent and Broker/Owner of RE/MAX Finest, she has honed her expertise in various areas of the industry. From assisting first-time home buyers in finding their dream homes to serving as a skilled listing agent, Kathy is dedicated to providing exceptional service to her clients. Recognizing the potential for wealth creation through real estate, Kathy is also well-versed in investment properties. She understands the intricacies of identifying profitable opportunities and guiding investors towards the right choices. As a buyer's agent, she meticulously evaluates each property to ensure her clients make informed decisions, whether they are upsizing, downsizing, or relocating. Kathy's expertise extends beyond residential real estate. She has a keen eye for emerging market trends and is well-equipped to handle pre-construction projects, condos, multi-family dwellings, estates, luxury properties, farmland, and lots. Her comprehensive knowledge of these diverse segments enables her to provide tailored solutions to clients with various needs and aspirations. While Kathy thrives in the fast-paced real estate industry, she also understands the importance of maintaining a healthy lifestyle. As a fitness nut, she religiously logs 2 miles a day on her elliptical machine, ensuring she remains energized and focused to deliver the highest level of service to her clients. Driven by a commitment to excellence, Kathy's ultimate goal is to leave her clients "Happy" with their real estate experience. She goes above and beyond to provide personalized attention, diligently guiding them through every step of the real estate process. With Kathy as your trusted real estate partner, you can be confident that you will receive exceptional service and achieve your desired outcomes in the ever-changing real estate market. Contact Me Visit my Website Send a Referral Subscribe to Newsletter