Acquiring a property is a beneficial method for attaining financial security and accumulating wealth. As stated by Freddie Mac, investing in a home allows you to increase your equity by making monthly principal payments and benefitting from property appreciation. If you’re thinking about purchasing a home, the arrival of spring presents a good opportunity to weigh your options. To determine if buying a property is a suitable choice for you, it’s recommended to seek guidance from a reliable real estate expert.
The Largest Part of Most Homeowners’ Net Worth Is Their Equity
It might come as a surprise to you, but owning a home constitutes a significant portion of a homeowner’s overall net worth. According to the National Association of Realtors (NAR), homeownership is the largest wealth source for families, with the median value of a primary residence being roughly ten times more valuable than the median value of financial assets.
Home equity, which is built up through price appreciation and mortgage repayment, is the main contributor to housing wealth or net worth. In other words, for the average household, owning a home does more to increase wealth than any other asset. Data from First American shows that this trend holds true across various income levels, as demonstrated in the graph below:
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.
Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area. www.kayahomesny.com
Wed, 01 Mar 2023 23:04:28 +0000
