A Key to Wealth is Homeownership
The link between financial security and homeownership is especially important today as inflation rises. Many people may not realize just how much owning a home contributes to overall networth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR) states:
“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.“
Here are just a few reasons why, if you’re looking to increase your financial stability, that homeownership is a worthwhile goal:
- Owning a home is a building block for financial success. A recent NAR report details several homeownership trends and statistics, including the difference in net worth between homeowners and renters. It finds that “. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021” (Keeping Current Matters).
- Equity gains can substantially boost a homeowner’s net worth. The net worth gap between owners and renters exists in large part because homeowners build equity. As a homeowner, your equity grows as your home appreciates in value and you make your mortgage payments each month. It’s like a forced savings account – you put your contributions away for another day all the while adding to that nest egg. As a renter, you’ll never see a return on the money you pay out in rent every month.
To sum it up, “Homeownership has always been an important way to build wealth” (NAR).
To look into investing in equity, contact me today. It would be a privilege to help you start building your wealth by investing in a second home in Mammoth Lakes!