{"id":8078,"date":"2023-07-20T10:30:00","date_gmt":"2023-07-20T10:30:00","guid":{"rendered":"https:\/\/thezakariagroup.com\/owning-your-home-helps-you-build-wealth\/"},"modified":"2023-07-20T10:30:00","modified_gmt":"2023-07-20T10:30:00","slug":"owning-your-home-helps-you-build-wealth","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/owning-your-home-helps-you-build-wealth\/","title":{"rendered":"Owning Your Home Helps You Build Wealth"},"content":{"rendered":"
You may have heard some people say it\u2019s better to rent than buy<\/a> a home right now. But, even today, there are lots of good reasons<\/a> to become a homeowner. One of them is that owning a home is typically viewed as a good long-term investment<\/a> that helps your net worth grow<\/a> over time.<\/p>\n You may be surprised to learn homeowners across various income levels have a much higher net worth than renters who make the same amount. Data from First American<\/em><\/a> helps illustrate this point (see graph below<\/em>):<\/p>\n <\/a><\/p>\n What makes wealth so much higher for homeowners? A recent article from Realtor.com<\/em> says<\/a>:<\/p>\n \u201cHomeownership has long been tied to building wealth\u2014and for good reason. Instead of throwing rent money out the window each month, <\/em>owning a home allows you to build home equity<\/em><\/strong>. And over time, equity can turn your mortgage debt into a sizeable asset.\u201d<\/em><\/p><\/blockquote>\n Basically, the wealth you accumulate when you own a home has a lot to do with equity. As a homeowner, equity is built up as you pay down your loan and as home prices appreciate<\/a> over time. Mark Fleming, Chief Economist at First American,<\/em> explains<\/a> how this same benefit isn\u2019t true for renters in a recent podcast:<\/p>\n \u201cRenters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.\u201d<\/em><\/p><\/blockquote>\n Before you decide<\/a> to sign another rental agreement, now is a good time to think<\/a> about whether it would be better for you to buy a home<\/a> instead. The best way to figure out what makes sense for you is to have a conversation with a real estate expert you trust. That professional can talk you through the benefits that come with owning to determine if that\u2019s the right next step<\/a> for you.\u00a0<\/p>\n If you’re not sure whether to keep renting or to buy a home<\/a>, know that owning a home, no matter how much money you make, can help build your wealth. Connect with a local real estate agent to get started<\/a> on the path to homeownership.<\/p>\n<\/div>\nHomeownership Builds Wealth Regardless of Income Level<\/strong><\/h4>\n
Bottom Line<\/h3>\n