October 2022 Market Update – Attention Renters! How Owning a Home Can Increase Your Net Worth

October 20, 2022

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How Owning a Home Can Increase 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 boost. I’m here to tell you, if you want to increase your financial security…… Now might be a good time to invest in real estate homeownership.

Renting vs Owning

A recent report from the National Association of Realtors talks about the net worth of a homeowner compared to that of a renter, and it finds that the average homeowner’s net worth is roughly 40 times that of a renter. This is because 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.

So, if you are looking to finally stop renting, and want to purchase, please reach out to my team, so we can help you strategize the best way possible to achieve your dream…… and help build your financial net worth at the same time.