Inflation: your home is your asset

There’s been a lot of news (rightfully so) about inflation and its impact on Americans’ wallets.

6%, 7% — last month the year-over-year inflation (YOY) hit 7.9% — a number that Americans haven’t seen in decades.

But what exactly does that mean? What can you do to protect yourself from such a steep level of inflation? And, lastly – can your home protect your value when inflation is on the rise?

Let’s take a look together.

What is inflation, exactly?

As a heads up, we’re not economists. We make premier eco-friendly surfaces. But we’re impacted by inflation the same as everyone else.

Inflation, for those of us who haven’t dusted off an Econ textbook since high school, refers to the increasing cost of goods.

You need more money to buy something today than you did yesterday.

Inflation is normal. In fact, the US sets a target rate of 2% annually. This low level of inflation keeps prices stable while encouraging businesses to hire new employees.

When it goes above 2% (as it is today), you run into trouble. Goods become more expensive, so customers have to make tough choices on what to afford.

How can you protect yourself against inflation?

Inflation means that your dollar today buys less than yesterday’s dollar.

Unfortunately, you can’t just go back in time and get yesterday’s dollar to protect yourself.

However, there are some investments that you can make that will help protect your value.

In times of inflation, people will look to buy assets or investments that will increase their value.

Historically, many people turn to safe commodities such as gold, silver, and platinum. These metals are often seen as stable stores of value, and are a way to make sure your dollar doesn’t depreciate.

But investing in metals can be confusing – you need to pay for storage, and you have to worry about theft.

Luckily, there is another, more common form of investment that many of us make. This investment is safe, inflation-resistant, and functional.

It’s your home.

Can homeownership protect me against inflation?

The value of your home is an excellent way to guard against inflation.

When you purchase a home, you often take on a mortgage – for 15-30 years. The 30-year mortgage rate is currently hovering under 5%. While that is higher than it has been, it is significantly lower than the pace of inflation.

In other words, buying a home protects you from the rising cost of rent.

In addition, property values increase over time – and these values outpace inflation. By buying a home now, you purchase an appreciating asset that will not only protect your value against inflation, but will help it increase over time.

Where does Lucciare fit in?

Like we said earlier, we aren’t economists. We are producers of luxury surfaces. We know the value that durable and elegant surfaces add to a residence.

Your home is an investment. Shouldn’t every element of your home serve to help that investment appreciate?

Lucciare certainly believes so.

Sky Falls

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