Attention Renters: How Owning A Home Can Improve Your Net Worth
Today more than ever, owning a home is not only a big achievement, but also a major financial milestone to your net worth. This is because as a homeowner you are able to build equity in your home which in turn gives your net worth a big boost.
If you want to increase your financial security, now might be a good time to invest in real estate homeownership.
A recent report from the National Association of Realtors talks about the net worth of a homeowner compared to that of a renter and finds that the average homeowner’s net worth is roughly 40 times that of a renter. This is because as a homeowner, your equity grows as your home appreciates in value and you continue to make monthly mortgage payments to your loan.
If you are a renter, you do not have this opportunity. In a recent article from CNET, it was noted that “Homeownership is still considered one of the most reliable ways to build wealth. When you rent, you are not investing in your financial future the same way you are when you are paying off a mortgage.” In most markets, home equity will continue to build wealth over time and your home will become an asset that has the potential to appreciate in value as you continue to pay down the balance of your mortgage. Also, there are, of course, numerous tax benefits, as well which will help you to keep more of your hard-earned money.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2022 real estate forecast, don't hesitate to reach out - we're happy to help!