Inflation is at a 40-year record-high today and it’s continuing to rise. With it, grows the concern of how to keep yourself afloat, for every individual. With inflation, jumping onto the property and real estate train might be the best thing that you can do.
We turned to Real Estate Professional Yusuf Yolasan to ask him how people can position themselves to combat inflation.
“During inflation, you need to own assets,” says Mr. Yolasan. And what is the largest asset most people own? Their home. Being a homeowner rather than a renter is one of the best things you can do to combat inflation.
If you rent, you are subject to rent increases based on current market conditions. And in an inflationary environment rent may increase rapidly. In worst-case scenarios, you may be forced to pack up and move to a different location if it becomes too expensive. If you own your home with a fixed mortgage, you don’t need to worry about your mortgage increasing. It will remain fixed despite what happens in the macroenvironment. And furthermore, you will be building equity in an inflating asset.
Why Exactly Is Homeownership the Better Option?
Well, you can pull up the data from the last 5, 10, 15, and 20 years, and you’ll come to the exact same conclusion each time. Home prices historically outperform inflation so it’s the one asset that you can count on.
Of course, buying a house today costs more than it did even a couple of years ago, but when you consider inflation, it’s still your safest bet. A lot of investment options come and go or may go through periods of hype where they rise and fall.
Homeownership serves as the basis for most people to build wealth and financial stability. Real estate is a must-have in anyone’s portfolio. Having fixed payments will help you muster through inflationary times. And ultimately your home will be an asset you can leverage for future investment. However, that doesn’t mean you can blindly invest in real estate without proper knowledge of what you’re getting into. Knowing how the market works, current things affecting the market, and specifics about your current location are critical in making the wisest investment decisions.
This is where having a realtor who specializes in the market you’re interested in becomes important. Someone who has recently been spotted making moves on the Miami scene is Yusuf Yolasan.
About Yusuf Yolasan
Having worked his way to the top, Yusuf is a Global Real Estate Advisor at Berkshire Hathaway HomeServices EWM Realty. Based out of Miami, Yusuf offers his expertise in South Florida, serving both local and international investors.
He started his career in Turkey, from where he’s originally from, working in marketing for Marks & Spencer. He then revamped the Calzedonia Group in Turkey as the Business Development & Expansion Manager, where he managed over 100 store operations across the country before taking the plunge to the United States.
If interested in knowing more about the Miami real estate market follow Yusuf Yolasan on Instagram, LinkedIn, Facebook, Twitter. Check out his website.
Written in partnership with TedFuel
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