One of the many reasons to buy a home is that it’s one of the best ways to build wealth and get a handle on your finances. From what Freddie Mac says:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
With spring coming up, now is a great time to think about whether or not you should buy a home. Talking to a trusted real estate professional is the best way to find out.
The Largest Part of Most Homeowners’ Net Worth Is Their Equity
You might be surprised to find out how much of a homeowner’s net worth comes from owning their home. The National Association of Realtors (NAR) says:
“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Gains in housing wealth (home equity or net worth) are made when prices go up and when the mortgage is paid off.”
In other words, home equity does more than anything else to help the average family get rich. And this is true for all income levels, according to data from First American (see graph below):
No matter how much money you make, one of the best things about owning a home is that it gives you financial stability and a way to build wealth. Talk to a real estate agent in your area today so you can start investing in a home.