4 ms·
Inflation will not affect your real estate. It will affect your rent. Therefore it is a regressive tax.
by navane 5y ago
Inflation will not affect your real estate. It will affect your rent. Therefore it is a regressive tax.
- aksss 5y agoWell.. most real estate requires constant care and feeding, and as inflation is seen in material cost increases, labor price increases, utility increases, etc., rental prices will reflect that in the sense that increased expenses are passed on to the renters. A homeowner bears those costs directly with nobody to pass the expense on to, so this absolutely affects them. In theory it will make your mortgage easier to pay off - inflation favors the borrower if it's sustained long enough for the borrower to see their income increase. If you have an ARM though, you might be in for a bruising year or (looks at watch) three to four.
- mikewarot 5y agoInflation will raise property "values" which then raise assessments, and thus Property Taxes. There are exemptions for home owners in my state, but those are getting wiped out by the increase in "value" of my home that I can't afford to sell.