Let Your House Do the Work
Every 3 years, the Federal Reserve conducts a Survey of Consumer Finances in which data is collected across all economic and social groups. In its most recent survey from 2010-2013, it concludes a homeowner’s net worth is 36 times greater than a renter’s ($194,500 vs. $5,400).
In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts in 2016 the net worth gap will widen even further to 45 times greater.
The graph below illustrates the gap between a homeowner’s wealth and a renter’s wealth:
Put Your Housing Cost to Work for You
Simply put, home ownership is a form of “forced savings”. With each mortgage payment you make, you are contributing to YOUR net worth. Every time you pay your rent, you are contributing to your LANDLORD’S net worth.
The latest National Housing Pulse Survey from NAR reveals 85% of consumers believe BUYING a home is a good financial decision/investment.
Lawrence Yun states:
“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”
Real Estate Bottom Line
If you want to know how you could put your housing cost to work for you by purchasing a home, let’s discuss your next steps.