One Major Benefit of Investing in a Home
One of the many benefits of purchasing a home is that it is a great way to accumulate wealth and gain financial stability. Freddie Mac has stated:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
Most homeowners' equity accounts for the majority of their net worth.
You might be surprised to learn how much of a homeowner's net worth is derived from their home. According to the National Association of Realtors (NAR),
“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
In other words, home equity contributes more to the average household's wealth than any other factor. And, according to First American data, this is true at all income levels (see graph below):
One of the most significant advantages of owning a home, regardless of income level, is that it provides financial stability and an opportunity to build wealth. Contact a local real estate agent today to begin investing in homeownership.
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