According to a recent article from the Federal Reserve, it does! Their data shows that the net worth of a homeowner is actually 40 times greater than that of a renter. Talk about incentive! Need more details? Keep reading…
The Survey of Consumer Finances releases data every three years that shows the breakdown of how owning a home can help build financial security. As you can see in the graph below, the net worth of renters stays roughly the same while the average net worth of homeowners continues to grow. In fact, the gap between owning and renting continues to increase each year.
Did you know that homeownership also serves as a form of ‘forced savings’? Each and every payment you make towards your mortgage is a contribution to your net worth. This is because you’re increasing the equity in your home.
The impact of home equity is part of why Gallup reports that Americans continue to pick real estate as the best long-term investment. This year’s survey reports that 35% of Americans chose real estate over stocks, savings, gold, and bonds.
There are so many great opportunities available for those planning to by a home. Record low interest rates (as of the publishing of this blog post) are giving many homebuyers the motivation and incentive to buy a home.
Studies show that owning a home increases your net worth. So, what are you waiting for? If you’re ready to take the next steps to create a safety net for your future, contact us today. Click the link below to get pre-approved or to contact an Apex Home Loans Mortgage Banker for more details on how you can use your monthly housing cost to build your net worth.