One Major Benefit of Investing in a Home

Feb 27, 2023

One Major Benefit of Investing in a Home Simplifying The Market

One of the many reasons to buy a home is that it’s a major way to build wealth and gain financial stability. According to Freddie Mac:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

With spring approaching, now’s a great time to consider if buying a home makes sense for you. The best way to figure that out is to talk with a trusted real estate professional.

The Largest Part of Most Homeowners’ Net Worth Is Their Equity

You may be surprised to learn just how much of a homeowner’s net worth actually comes from owning their home. The National Association of Realtors (NAR) shares:

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. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”

In other words, home equity does more to build the average household’s wealth than anything else. And according to data from First American, this holds true across different income levels (see graph below):

One Major Benefit of Investing in a Home | Simplifying The Market

Bottom Line

One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. Let’s connect today so you can start investing in homeownership.

Discover 3 Mistakes to Avoid on Your Home Mortgage

These Tips Will Save You Money!

Our Blog

Related Posts

Don’t Miss This Prime Spring Window To Sell Your House

According to Realtor.com, the best week to list your house this year was April 13–19. And since that week has come and gone, you might be wondering: did I miss my chance? Not at all – and here’s why.That’s just one source’s take, based on their own research. Other...

Commercial Real Estate Loan Origination Fees: What You Need to Know

Not sure why it was overlooked, but I’ve also backed it up on Dropbox. When financing commercial real estate, lenders typically apply several fees—one of the most common being the loan origination fee.   What Is a Loan Origination Fee? This fee is charged to cover the...

Understanding Equity Multiple in Commercial Real Estate

What Is Equity Multiple? Equity multiple is a key metric used to measure the overall return on an investment. It's particularly popular in private equity and commercial real estate because it offers a straightforward way to gauge performance. Few metrics offer such a...