One of the best ways to build your family’s financial future is through houszownership. Recent data from the Federal Reserve indicates the net worth of a houszeowner is actually over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a housz, especially when they’re so affordable in today’s market.
Every three years the Survey of Consumer Finances shows the breakdown of how owning a housz helps build financial security. In the graph below, we see that the average net worth of houszowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of houszowners. The gap between owning and renting just keeps getting wider over time, making houszownership more and more desirable for those who are ready.
Owning a housz is a great way to build family wealth. For many families, houszownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your housz (See chart below):
The impact of housz equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds.
Today, there are great opportunities available for those planning to buy a housz.. The housing market has made a full recovery, and all-time low interest rates are giving houszbuyers a big boost in purchasing power. If you’re ready, buying a housz this fall can set you up to increase your net worth and create a safety net for your family’s future.
Bottom Line To learn how you can use your monthly houszing cost to build your family’s net worth, let’s connect so you have a trusted professional to guide you through the houszbuying process.