By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
85209.com85209.com85209.com
Notification Show More
Font ResizerAa
  • Live Local
    • Eat Local
    • Local Events
    • Shop Local
  • Mesa News
  • Real Estate
  • School News
  • Podcast Episodes
  • Search Homes
  • Sell My Home
  • Cash Offer for My Home
Reading: How Owning a Home Builds Your Net Worth
Share
Font ResizerAa
85209.com85209.com
  • Live Local
  • Mesa News
  • Real Estate
  • School News
  • Podcast Episodes
  • Search Homes
  • Sell My Home
  • Cash Offer for My Home
Search
  • Live Local
    • Eat Local
    • Local Events
    • Shop Local
  • Mesa News
  • Real Estate
  • School News
  • Podcast Episodes
  • Search Homes
  • Sell My Home
  • Cash Offer for My Home
Have an existing account? Sign In
Follow US
85209.com > Blog > Real Estate > How Owning a Home Builds Your Net Worth
Real Estate

How Owning a Home Builds Your Net Worth

Klaus Team
Last updated: September 6, 2022 10:00 am
Klaus Team Published September 6, 2022
Share
SHARE

How Owning a Home Builds Your Net Worth | Simplifying The Market

Contents
Owning a Home Is a Key Ingredient for Financial SuccessEquity Gains Can Substantially Boost a Homeowner’s Net WorthBottom Line

Owning a home is a major financial milestone and an achievement to take pride in. One major reason: the equity you build as a homeowner gives your net worth a big boost. And with high inflation 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 now could be a good time to start on your journey toward homeownership.

Owning a Home Is a Key Ingredient for Financial Success

A report from the National Association of Realtors (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”

To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter’s. This difference shows owning a home is a key step in achieving financial success.

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. When you own a home, your equity grows as your home appreciates in value and you make your mortgage payments each month. As a renter, you don’t have that same opportunity. A recent article from CNET explains:

“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home . . . When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”

But 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, as a recent article from Bankrate notes:

“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”

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 in rent every month.

Bottom Line

Owning a home is an important part of building your net worth. If you’re ready to start on your journey to homeownership, let’s connect today.

You Might Also Like

The Majority of Veterans Are Unaware of a Key VA Loan Benefit

The Truth About Negative Home Equity Headlines

A Key Opportunity for Homebuyers

Think Twice Before Waiting for 3% Mortgage Rates

How Remote Work Impacts Your Home Search [INFOGRAPHIC]

Share This Article
Facebook Twitter Email Print
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US

Find US on Social Medias
Facebook Like
Twitter Follow
Youtube Subscribe
Telegram Follow
Popular News
Podcast EpisodesReal Estate

The Keys to Home Security

AJ Cedo AJ Cedo April 18, 2022
Simple Steps To Help You Save for Your First Home
Reasons You Should Consider Selling This Fall
The Fascinating Science Behind Arizona’s Monsoons
Why a Condo Could Be Your Perfect First Home
- Advertisement -
Ad imageAd image

About US

Your Community Connection
We provide local resources to our community to educate, support, and make our community stronger. Your Community Connection is a service of Klaus Team Real Estate Solutions with Real Broker. Equal Housing Opportunity.

Subscribe

Subscribe to our newsletter to get local news, market updates, and open houses in the community sent to your email.

 

Subscribe to Your Community Connection Newsletter

* indicates required
© Klaus Team Real Estate Solutions. All Rights Reserved.
Welcome Back!

Sign in to your account