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 Realtor.com 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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