Creating family wealth matters and homeownership provides an excellent vehicle for wealth creation. While it may not feel like you’re creating wealth as you make regular mortgage payments, later in life, you’ll be thankful you own a home.
What Homeownership Looks Like Later In Life
When you choose to own your home instead of renting, it has a massive impact on your future wealth. In fact, a Harvard Study from the Joint Center for Housing Studies called Housing America’s Older Adults 2018 showed that a 65-year-old homeowner, on average, had a network of $319K, while a 65-year-old renter had a network of just under $7K. That’s a pretty big difference, and there’s good reason for the difference.
Another article called The First Rung on the Ladder to Economic Opportunity is Housing stated, “The ladder to economic success can stretch only so high without the asset-building power of homeownership.”
Without owning a home, it’s hard to grow wealth over the years. With a home, you gain the ability of a growth asset that will go up in value as you pay your mortgage. In fact, many homeowners have seen gains in equity over recent years of around $10K per year, on average.
Choosing to Own a Home Over Renting
Most adults know that when you rent, you’re paying someone else’s mortgage. This allows your landlord to build wealth through the asset you live in, and they own.
Becoming a homeowner allows you to be in charge of your wealth and often costs less than renting. There are many homes for sale in Mint Hill, NC perfect for first-time homeowners trying to make the decision between homeownership and continuing to rent.
While the price of entry to own a home may be higher than the price of entry for renting, the benefits of homeownership for wealth buildings are undeniable. When you enter the Mint Hill real estate market, you may be surprised at the benefits you gain compared to renting.
One of those benefits is the ability to build wealth. Based on recent studies, homeownership certainly leads to building wealth, and renting keeps you from building wealth. If you’ve been considering becoming a homeowner, there’s no better time than now.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger 704-650-5707 | email@example.com.