Owning a home helps you build wealth

Some people may have told you that it’s better for the moment to rent a house than buy one. Even today, there are many good reasons to own a home. Homeownership Builds Wealth No Matter Your Income LevelYou might be surprised to find out that homeowners of all income levels have a higher net worth than those who rent. This point is illustrated by data from First American (see graph below). What makes wealth so high for homeowners? Recent article from states: “Homeownership is long associated with building wealth, and for good reason. Owning a house allows you to build equity instead of throwing your rent money away each month. Equity can transform your mortgage debt over time into a sizeable investment. As a homeowner equity builds up as you pay off your loan and home prices increase over time. Mark Fleming explains in a podcast that renters don’t get the same benefit: “Renters, as non-homeowners, do not gain wealth as home prices increase.” This wealth is actually accrued to the landlord. “Before you sign another rental contract, now is a great time to consider whether it would be more beneficial for you to purchase a home. You can find out what is best for you by talking to a real estate professional you trust. This professional can explain the benefits of owning a home to you and help you decide if it’s the best next step for you. Bottom LineIf renting or buying a house is not clear to you, you should know that owning your home can help you build wealth, regardless of how much you earn. Contact a local agent to start the journey to homeownership.

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