September 5, 2022
Owning a home is a major financial milestone and an achievement to take pride in. One major reason: the equity you build as a homeowner gives your net worth a big boost. And with high inflation right now, the link between owning your home and building your wealth is especially important.
If you’re looking to increase your financial security, here’s why now could be a good time to start on your journey toward homeownership.
A report from the National Association of Realtors (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. It finds:
To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter’s. This difference shows owning a home is a key step in achieving financial success.
The net worth gap between owners and renters exists in large part because homeowners build equity. When you own a home, your equity grows as your home appreciates in value and you make your mortgage payments each month. As a renter, you don’t have that same opportunity. A recent article from CNET explains :
In other words, when you own your home, you have the advantage of your mortgage payment acting as a contribution to a forced savings account that grows in value as your home does. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.
Owning a home is an important part of building your net worth. If you’re ready to start on your journey to homeownership, let’s connect today.
September 26, 2023
Mortgage rates directly impact the monthly payment you’ll have on the home you purchase.
August 31, 2023
If you’ve been in your home for a while, you might have gained a considerable amount of equity, too.
August 30, 2023
Here’s a high-level overview of the connection between the inflation and housing market.
August 29, 2023
The latest data shows plenty of buyers are still out there, and they’re purchasing homes today.
August 28, 2023
Here’s some information you may find helpful on why and where your peers are buying.
August 23, 2023
If you’re thinking about selling your house, a strong job market, growing wages, and the resulting buyer demand is fantastic news.
August 17, 2023
Since most are paying on time, a wave isn’t coming.
August 16, 2023
More people are buying less expensive newly built homes right now while affordability remains a challenge.
August 15, 2023
There aren’t many homeowners who are seriously behind on their mortgage payments.
We’re here to work alongside you to help you make informed decisions when buying or selling your home or investment. Contact us to get started today.