One Major Benefit of Investing in a Home
The fact that buying a property is a significant means to accumulate wealth and achieve financial security is just one of the numerous benefits. As said by Freddie Mac:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
It's a good idea to think about if buying a home makes sense for you right now as spring approaches. The easiest method to determine that is to have a conversation with a reliable real estate expert.
Equity makes up the majority of homeowners' net worth.
How much a homeowner's net worth actually derives from owning their property may surprise you. According to the National Association of Realtors (NAR)
“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
In other words, home equity contributes more than anything else to the wealth-building of the typical household. And according to First American data, this is accurate for all income levels (see the graph below):
No matter what your salary level, having a home is one of the best things you can do for your finances and for your capacity to accumulate wealth. Let's talk right now so you can begin making investments in homeownership.