Owning a home is the ultimate aim for many people, and it’s one major step you can take to increase your net worth. The equity built up in an owner’s house will provide significant relief against today’s high inflation rates, which are making this country difficult financially. With all these factors pushing us towards buying homes instead of renting them out or selling their properties at loss-making prices (due to both supply & demand), now could be just what we need! We need to understand how owning your home builds net worth.
Owning a Home Is a Key Ingredient for Financial Success
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:
Whether you’re a first-time buyer or looking to upgrade from your current property, owning is worth it.
The average homeowner’s net worth equals 40 times more than that of renters, which shows how important having home equity really can be when trying to get ahead financially in today’s competitive world!
Equity Gains Can Substantially Boost a Homeowner’s Net Worth
As a renter, you don’t have the same opportunity for equity growth that homeownership provides. The net worth gap between owners and renters exists in large part because of this one major difference: while homebuyers build up their assets through regular payments made on mortgages or other loans associated with homes (such as a second mortgage), renters cannot participate in these opportunities which lead them away from building much-needed savings accounts overtime period if ever at all!
Your home is one of the most important investments you’ll ever make, and it pays to take care of them. Home equity grows over time, so keeping up on maintenance will help build wealth for years!
When you own your home, the monthly mortgage payment helps fund a forced savings account that grows as well. When selling, it’s important to take into consideration any equity built up in rent expense because without this money gone before ever seeing a return on its investment.
Sandi & Debbie Say…
The American dream of home ownership is alive and well. Owning a house can be an important step on your long journey to build up that net worth, so don’t hesitate. Let’s connect today!
Call us today at 949-293-5139 to schedule a quick strategy session with us!
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