On the fence about becoming a homeowner? There’s one key advantage to consider.
Is it better to buy or rent? That’s the age-old question. Of course, there are pros and cons on both sides of the coin. However, becoming a homeowner offers one huge advantage over renting: a path to financial stability.
When you rent, your monthly payment simply goes towards keeping a roof over your head. On the other hand, when you own, your monthly mortgage payments go towards your equity. What is equity? In simple terms, equity is the the difference between how much your home is worth and how much you owe on your mortgage. As you build equity, you accrue wealth and build financial stability. In fact, the largest part of most homeowners’ net worth is their equity.
According to the National Association of REALTORS®,
“Homeownership is the largest source of wealth among families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
You may wonder if this is true across different income levels. According to data collected by First American, it is. Across income levels ranging from lower than $26,000 a year up to $192,000 a year, home equity made up the largest percentage of net worth in all categories.
So what’s the bottom line? One of the biggest advantages of owning a home is the financial stability and avenue to build wealth it provides. If you are thinking of buying, contact your local real estate specialist today at SurterreProperties.com to discuss this investment in your future.