Amidst the current buzz surrounding home prices and increasing mortgage rates, the question of whether investing in homeownership remains a viable option may arise. According to a recent Gallup poll, the resounding answer is yes. For the 11th year in a row, real estate has been acclaimed as the premier long term investment, consistently surpassing alternative investment avenues such as gold, stocks, and bonds (as depicted in the graph below).
If the prospect of purchasing a home has crossed your mind, let this poll serve as a reaffirmation. Despite the current circumstances, Americans acknowledge that owning a home is a significant long term investment, solidifying its position as a formidable financial choice.
Why Do Americans Still Feel So Positive About the Value of Investing in a Home?
Purchasing real estate has consistently proven to be a reliable and effective long term strategy for wealth accumulation in the United States. Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), emphasizes the transformative power of homeownership, stating that it serves as a catalyst for wealth creation across all socioeconomic backgrounds. With a monthly mortgage payment acting as a forced savings account, homeowners have the opportunity to amass a net worth approximately 40 times greater than that of renters.
This wealth accumulation stems from the appreciation of the property’s value over time, alongside the gradual repayment of the mortgage. Consequently, initiating the journey towards building wealth through homeownership at the earliest opportunity is often advisable. By choosing to rent instead of buying, you forfeit the advantage of channeling monthly payments towards the growth of your home equity.
Bottom Line
Embarking on the path of homeownership is a momentous choice, and it comes as no surprise that countless individuals consider real estate to be the ultimate long term investment. If you’re prepared to commence your personal journey towards owning a home, don’t hesitate to get in touch with us today. Together, we can take the first steps towards fulfilling your homeownership aspirations.
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.
Thu, 08 Jun 2023 21:27:42 +0000
