If you’re like most people, you are seeking ways to ensure a worry-free retirement. Maybe it’s security you care about, you have a big family, and one or two unforeseen emergencies can be devastating to your wallet. The 2008 financial crisis and the recent pandemic have shown us just how volatile the economy can be and how it can directly impact us. Of course, there are steps you can take to ensure that a crisis has a limited impact on you.
Perhaps you have a savings account, 401K at work, a mutual fund, and some stock options to aid in building up your family’s financial future. It’s true, investing and saving are smart practices that can pay off in the long run, but they are not the only way to build wealth. Asset building is a well-known proven way to build wealth.
Wealth acquired from owning an asset such as a Home produces a concrete contribution to any family’s economic standing. Home equity can be used for costs such as investing in other properties like a rental home, renovation of a house, emergency expenses, and significant life events. To demonstrate this fact, homeowners gained an average of $9,500 in 2018 through an increase in home prices.
Build Wealth with Home Ownership
The wealth that you gain from homeownership is also known by the well-known terms “net worth,” or “equity,” which is accrued gradually through incremental increases in house prices and the principal loan payments that the homeowner makes each month. Home equity is vital to the retirement plan of most families. A recent report revealed that renters over 65 years old have a net worth of around $7,000. Conversely, 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. That is why having a home is so important if you are serious about building wealth.
You may say, “It’s all well and good, but I am a renter and can’t afford mortgage payments.” If that sounds like you, you’re wrong. Many lenders are willing to work with first-time homebuyers. There are a number of assistance programs available to aid in buying your first home.
So, if you are interested in building your net worth over time with a solid investment, homeownership is a proven way to build wealth.
Trust Megan Dowdy Realty
If you are a renter in Central Florida and are considering purchasing your first home, call Megan Dowdy Realty. Or you can also complete our simple contact us form. We have the experience and knowledge of today’s housing market to guide you through the home buying process. You can count on us to explain each step of buying your first home. We can also advise which home lenders are your best bet for being approved for a mortgage. Don’t wait for another second to build wealth through a new home, call today!