If you’re looking for the most surefire way to build your wealth, become a homeowner. We’ve blogged about this in the past, but it really is one of the most effective (and simplest) ways to build your wealth for the long term.
The majority of homeowners take out a mortgage loan to buy their home. By paying off your home’s mortgage every month, you’re building your wealth. Although it feels like you’re paying somebody else (the bank) you’re actually putting money into a forced savings account.
And forcing yourself to save money pays off. Big time.
It Helps You Achieve the American Dream
A core part of what many consider “The American Dream” is owning a home. Owning your own home brings a myriad of benefits, both financial and non-financial.
Financially speaking, buying a home and becoming a homeowner increases your net worth. Every time you make a mortgage payment, your net worth goes up a little.
Here’s an example: in a study performed by The Joint Center for Housing Studies at Harvard University, researchers found that the difference in net worth between homeowners and renters over 65 was 47.5 times greater.
In that study, nearly half of those homeowners’ net worth came from their home equity!
It’s a Huge Retirement Benefit
Studies show that homeowners over 65 are more financially prepared for retirement. Even if they choose to sell their home and downsize for retirement, they have the added bonus of owning their home for a long time—meaning their home has likely increased in value.
Now, when they choose to sell their home, they’ll make an even bigger return on their investment.
Although renting may seem like an affordable option short-term, it’s less lucrative in the long term. This is especially true when you consider that median rent prices have increased substantially every year.
Plus, It Has Emotional Benefits
You deserve to love where you live. That’s the biggest emotional benefit you get from owning your home: you get to put down roots and invest in a community that will improve your quality of life.
When you buy a home in a community like Raleigh and the NC Triangle, you’re signing up for an exciting, well-rounded lifestyle! The Triangle has plenty of small towns, gorgeous real estate options, and maybe even a major city or two.
Ready to Become a Homeowner?
We’re ready to help. Start building your wealth and guaranteeing yourself a more successful retirement by buying your dream home in the greater Raleigh area.