You may have a savings account, 401K at work, a mutual fund, and some company profit sharing, in order to build up your family’s financial future. While investing and saving are wise practices that can pay off in the long run, there is another way to build wealth. Asset building is a well-known time tested way to build wealth.
Home Equity
Wealth derived from owning an asset such as a Home creates a positive contribution to a family’s economic status. Home equity can be used for expenses such as investing in other properties such as a rental home, renovation of the house, emergency expenses, and significant life events. To illustrate this fact, homeowners made an average of $9,500 in 2018 in increased home prices.
Net Worth
The wealth that comes from homeownership is also known by the familiar terms “net worth,” or “equity” is accrued over time through increases in home prices and the principal loan payments that the homeowner makes every month. Home equity is essential to the retirement plan of most families. A recent report showed that renters over 65 years old have a net worth of around $7,000. Meanwhile, homeowners over 65 years old have a net worth of approximately $320,000. Clearly, a homeowner over 65 years old will be more comfortable entering retirement than a renter over 65 years old.
So, if you are interested in building your net worth over time with a solid investment, homeownership is a proven way to build wealth.
If you are a renter in the greater Tampa Bay Area or are considering purchasing another home, call me at 813-915-6649 or send me an email. I have the experience and knowledge of today’s housing market to guide you through the loan process. Don’t wait for another second to build equity through a new home, call today!
