Did you know… In 2021, the average net worth of a homeowner was about $300,000, while that of a renter was $8,000? To put that into perspective, the average homeowner’s net worth is roughly 40 times that of renter.
One major reason for that is the equity that you build as a homeowner gives your net worth a big boost, and with how high inflation is right now, the link between owning your home and building your wealth is especially important if you’re looking to increase your financial security.
➡️ Here’s why it’s a good time to start
The net worth gap between owners and renters exist in large part because property owners build equity. When you own a property, your equity grows as your property appreciates in value. As a renter you don’t have the same opportunity.
On top of that… your home equity grows even more as your home appreciates in value over time. That has a major impact on the wealth you build. In other words, when you own your home, you have the advantage of your mortgage payment acting as a contribution to a forced savings account that grows in value as your home does.
And when you sell, any equity you’ve built up comes back to you.
As a renter you’ll never see a return on the money you pay out on rent every month.
➡️ My Take?
Owning a home is an important part of building your network. If you’re ready to start your journey to homeownership, let’s connect today! One of our top realtors will be able to assist you in any real estate need.
As the temperature drops and snowflakes start to fall, it’s time to transform your home into a cozy winter haven.
As the days grow shorter and a crisp chill settles in the air, hearts around the world start to beat