Homebuyer Tips
From Catherine Mitchell, The Intentional Realtor®™,
A homeowner’s net worth is 36x greater than a renter’s
According to the Federal Reserve in their Survey of Consumer Finances, the average net worth of a homeowner is $194,500. However, the average net worth of a renter is only $5,400 which makes the net worth of a homeowner 36 times greater. A gap that is expected to keep widening as the years go by.
A homeowner’s net worth:
Homeownership is a great way to build wealth, with home equity being a major factor to wealth building. To own a home over the long term generally creates an appreciation of value; i.e. the home becomes worth more than you paid for it. Plus, with each payment you make, you're chipping away at the mortgage loan which also grows your equity. This equity is available to you when you sell. You can use it to buy your next home, pay off debt, or take a vacation! The equity contributes to your overall financial picture and has a positive influence on your net worth.
A renter’s net worth:
Rental payments helps the landlord’s net worth. For the renter there is no growing equity, no wealth building via homeownership. The landlord, who is more than likely the homeowner, benefits greatly from the renter. Not only is the renter contributing to the homeowner’s equity, but the renter is almost certainly paying more for rent than the actual mortgage payment which again contributes to the homeowner’s wealth.
Benefits of Homeownership:
Buying a home is a good financial investment. All the benefits go to the homeowner, while the renter has none. Hopefully, your goal is to be a short term tenant on your way to becoming a long term homeowner!
Connect with Catherine:
As The Intentional Realtor®™, my goal is to help you achieve the reality of homeownership. I’ll do my best to find the perfect home for you so that you too can reap the benefits of homeownership, which is why securing a good Realtor® is in your best interest to help you get the home of your dreams.
For this and more real estate needs by The Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.
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