Lisa Mailhot | July 20, 2023
Owning Your Home Aids in Accumulating Wealth - Some people advocate renting over buying a home presently. However, there are numerous compelling reasons to become a homeowner even today. One of the most significant advantages is that owning a home is widely considered a prudent long-term investment that steadily boosts your net worth over time.
It might surprise you to know that individuals from different income brackets who own homes have substantially higher net worth compared to renters earning the same amount. Data from First American supports this observation (refer to the graph below):
The reasons behind homeowners' greater wealth are elucidated in a recent article from Realtor.com:
“Homeownership has long been tied to building wealth—and for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.”
Essentially, the wealth generated through homeownership is closely tied to equity. As a homeowner, equity is gradually built up through mortgage repayment and the appreciation of home prices. Mark Fleming, Chief Economist at First American, pointed out in a recent podcast that this benefit does not apply to renters:
“Renters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.”
Before renewing your rental agreement, now is the ideal moment to contemplate whether purchasing a home would be a wiser decision. The best approach to determine what suits you best is to consult a real estate expert you trust. They can guide you through the advantages of homeownership and help you decide if it's the right next step for you.
If you're uncertain about continuing to rent or taking the plunge into homeownership, remember that owning a home, regardless of your income level, can significantly contribute to building your wealth. Let's connect now to begin your journey toward homeownership.
Stay up to date on the latest real estate trends.
Lisa Mailhot | November 30, 2023
Experience Unique Living: Converted Churches, Barns, and Factories Turned Homes. Discover the charm of unconventional conversions with history, character, and modern c…
Lisa Mailhot | November 28, 2023
Delve into the secrets of Orange County, California, with our blog featuring captivating trivia facts. Whether you're a potential buyer, seller, or a curious tourist, …
Lisa Mailhot | November 27, 2023
Uncover 2023 Orange County Housing Market Trends: Delve into median sold prices, sales metrics, and market dynamics to understand if it's a buyer's or seller's market.…
Lisa Mailhot | November 22, 2023
Stuck in a last-minute gift scramble? Discover seven low-stress, last-minute gift ideas that'll delight your loved ones and elevate their home experience. From cozy th…
Lisa Mailhot | November 21, 2023
Explore the changing real estate landscape influenced by declining mortgage rejection rates. Discover the opportune moment for buying or selling your home while improv…
Lisa Mailhot | November 20, 2023
Selling your home with challenging neighbors? Learn how to handle noisy, disrespectful, or problematic neighbors effectively. Follow these tips to ease the selling pr…
Lisa Mailhot | November 16, 2023
Get the latest insights into the Orange County real estate market. Discover trends, notable closings, and the impact of the holiday season on inventory. Stay informed …
Lisa Mailhot | November 15, 2023
Stay informed on FHFA's 2024 multifamily loan purchase caps, totaling $140 billion for Fannie Mae and Freddie Mac. Explore the impact on the multifamily market and its…
Lisa Mailhot | November 14, 2023
Learn about the rise of alternative lenders, such as parents, as a solution to the affordability challenge in today's real estate market. Explore available options for…
You’ve got questions and we can’t wait to answer them.