I get asked all the time if buying a house is really better than renting. “With renting I get someone else to fix stuff when it breaks, mow my yard and all that” is the kind of stuff I hear. My answer is if that’s all you’re worried about then yeah stay a renter, however, if you want to invest in yourself and in your future then being a homeowner is a great way to do that.
In a recent survey by the Federal Reserve (every three years they conduct a huge survey collecting data across all economic and social groups.) they found that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). What this shows is that the net worth of a homeowner is over 44 times greater than that of a renter.
Owning a home is a great way to build family wealth. I’ve talked about this before, as a matter of fact, I had this argument with my son and he finally gets it, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home. And this isn’t just me saying this, for five years running Americans picked real estate as the best long-term investment in a Gallup poll. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.
Greater equity in your home gives you options. If you’re ready to leave the renters world behind or if you want to find out how you can use the increased equity in your house to move to a home that better fits your current lifestyle, let’s talk. I’d be glad to sit down with you and take a look at your situation and we’ll figure out together how to get you home.