For generations, homeownership has been a pivotal part of the American Dream. Owning a home is one of the best ways to build financial security, and it can exponentially increase your wealth over time.
Even as prices continue to skyrocket, low interest rates have made buying a home more affordable. If you’re currently renting, we have a few reasons why you should think about making a move into a home of your own.
Owning a Home Is an Easy Way to Build Wealth
Every three years, the Survey of Consumer Finances releases a report that shows the financial benefits of owning a home. This year’s numbers demonstrate 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.
Still not sure if buying a home is worth it? Let’s take a closer look at how you can build your personal wealth through homeownership.
Owning a home can help you gain wealth over time
Although it requires a larger upfront investment, owning a home can help you increase your net worth while also providing financial stability. Recent data from the Federal Reserve indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. The wealth gap between homeowners and renters also grows larger each year, which means you shouldn’t wait to buy if you can afford it.
Real estate is a fantastic investment
When you buy a home, you aren’t just securing a place to live—you’re also making a major investment. Homeownership is a type of forced savings that grows over time. Whenever you make a mortgage payment, you’re contributing to your net worth by increasing the equity you have in your home.
At the very least, it’s worth investing in your own home to diversify your assets. In a survey by Gallup, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds. Homes tend to increase in value even during a recession, which makes them a stable investment.
There’s never been a better time to buy
There are plenty of opportunities available throughout the Triangle for anyone planning on buying a home. The housing market has made a full recovery, and all-time low interest rates are giving buyers a big boost in purchasing power.
If you’re ready to increase your wealth, consider connecting with a local agent. Fall is shaping up to be a busy season for real estate, and there’s never been a better time to make a move!
Only Work with the Best
Ready to take your next steps? Linda Craft & Team has plenty of experience helping first-time buyers track down the home of their dreams! Contact us at 919-235-0007 to put our 350+ years of experience to work for you.