We frequently overhear renters assuming that building wealth through homeownership is no longer possible. To that, we say, “hold our SOLD sign!”
One of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates that a homeowner’s net worth is over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home, especially when they’re so affordable in today’s market, while rents continue to rise.
Every three years, the Survey of Consumer Finances shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting keeps getting wider over time, making homeownership more desirable for those who are ready.
Building wealth through homeownership is good for the whole family
For many families, homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home. (See chart below):
The impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds.
Today, there are great opportunities available for those planning to buy a home. The housing market has made a full recovery, and all-time low-interest rates give homebuyers a big boost in purchasing power. The conditions are ripe to start building wealth through homeownership, and we’re here to help you achieve your goals.
If you’re ready, buying a home this fall can set you up to increase your net worth and create a safety net for your family’s future.
Building wealth through homeownership is still possible. Many may believe that owning a home is beyond their reach, yet we prove how possible it is to get the keys in your hand every day.
To learn how to use your monthly housing cost to build your family’s net worth, let’s connect, so you have a trusted professional to guide you through the homebuying process. We have free resources for younger renters and first-time buyers. Let us show you how possible it is to buy a home and start building wealth.
Contact us today to get on-track to homeownership. We’ll help you move out and move up.