{"id":6799,"date":"2021-04-08T06:00:48","date_gmt":"2021-04-08T10:00:48","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6799"},"modified":"2021-04-08T06:00:48","modified_gmt":"2021-04-08T10:00:48","slug":"homeownership-is-full-of-financial-benefits","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6799","title":{"rendered":"Homeownership Is Full of Financial Benefits"},"content":{"rendered":"<div>\n<p><img decoding=\"async\" width=\"358\" src=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-KCM-Share-549x300-1.jpg\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"Homeownership Is Full of Financial Benefits | Simplifying The Market\" loading=\"lazy\" style=\"display: block; margin-bottom: 5px; clear:both;max-width: 100%;\" link_thumbnail=\"\" srcset=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-KCM-Share-549x300-1.jpg 549w, https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/04\/07104129\/20210408-KCM-Share.jpg 750w\" sizes=\"auto, (max-width: 549px) 100vw, 549px\"><\/p>\n<p>A <em>Fannie Mae<\/em> <a href=\"https:\/\/www.fanniemae.com\/media\/38891\/display\">survey<\/a> recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today\u2019s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:<span id=\"more-44161\"><\/span><\/p>\n<ul>\n<li>88% \u2013 a better chance of saving for retirement<\/li>\n<li>87% \u2013 the best investment plan<\/li>\n<li>85% \u2013 the chance to be better off financially<\/li>\n<li>85% \u2013 the chance to build up wealth<\/li>\n<\/ul>\n<p>Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget.<\/p>\n<h4><strong>Does homeownership actually give you a better chance to build wealth?<\/strong><\/h4>\n<p>No one can question a person\u2019s unique feelings about the importance of homeownership. However, it\u2019s fair to ask if the numbers justify homeownership as a <strong>financial<\/strong> asset.<\/p>\n<p>Last fall, the <em>Federal Reserve<\/em> released the <a href=\"https:\/\/www.federalreserve.gov\/publications\/files\/scf20.pdf\">Survey of Consumer Finances<\/a>, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that <strong>homeowners<\/strong> <strong>have forty times higher net worth than renters<\/strong> ($255,000 for homeowners compared to $6,300 for renters).<\/p>\n<p>The difference in net worth between homeowners and renters has continued to grow. Here\u2019s a graph showing the results of the last four Fed surveys:<a href=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-MEM-Eng-1.png\" data-rel=\"lightbox-image-0\" data-rl_title=\"\" data-rl_caption=\"\" title=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44164\" src=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-MEM-Eng-1.png\" alt=\"Homeownership Is Full of Financial Benefits | Simplifying The Market\" width=\"650\" height=\"488\" srcset=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-MEM-Eng-1.png 1000w, https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/04\/07104133\/20210408-MEM-Eng-1-400x300.png 400w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\"><\/a>The above graph only includes data through 2019, but according to <em>CoreLogic<\/em>, the <a href=\"https:\/\/www.corelogic.com\/insights-download\/homeowner-equity-report.aspx\">equity<\/a> held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.<\/p>\n<p>Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a <a href=\"https:\/\/blog.firstam.com\/economics\/homeownership-remains-strongly-linked-to-wealth-building\">study<\/a> by <em>First American<\/em> shows homeowners have greater net worth than renters regardless of their income level. Here are the findings:<a href=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-MEM-Eng-2.png\" data-rel=\"lightbox-image-1\" data-rl_title=\"\" data-rl_caption=\"\" title=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44163\" src=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-MEM-Eng-2.png\" alt=\"Homeownership Is Full of Financial Benefits | Simplifying The Market\" width=\"650\" height=\"488\" srcset=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/04\/20210408-MEM-Eng-2.png 1000w, https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/04\/07104131\/20210408-MEM-Eng-2-400x300.png 400w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\"><\/a>Others may think homeowners are older and that\u2019s why they have a greater net worth. However, a <em>Joint Center for Housing Studies of<\/em> <em>Harvard University<\/em> <a href=\"https:\/\/www.jchs.harvard.edu\/sites\/default\/files\/reports\/files\/Harvard_JCHS_Housing_Americas_Older_Adults_2019.pdf\">report<\/a> on homeowners and renters over the age of 65 reveals:<\/p>\n<blockquote>\n<p><em>\u201cThe ability to build equity puts homeowners far ahead of renters in terms of household wealth\u2026the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Homeowners 65 and older have 47.6 times greater net worth than renters.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>The idea of homeownership as a direct way to build your net worth has met the test of time. Let\u2019s connect if you\u2019re ready to take steps toward becoming a homeowner.<\/p>\n<p>Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today\u2019s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents: 88% \u2013 a better chance of saving for retirement 87% \u2013 the best investment plan [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-6799","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6799"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6799\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}