{"id":7686,"date":"2022-03-28T06:00:27","date_gmt":"2022-03-28T10:00:27","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7686"},"modified":"2022-03-28T06:00:27","modified_gmt":"2022-03-28T10:00:27","slug":"a-key-to-building-wealth-is-homeownership","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7686","title":{"rendered":"A Key To Building Wealth Is Homeownership"},"content":{"rendered":"
\n

\"A<\/p>\n

The link between financial security and homeownership is especially important today as inflation<\/a> rises.\u00a0 But many people may not realize just how much owning a home contributes to your overall net worth<\/a>. As Leslie Rouda Smith, President of the National Association of Realtors<\/em> (NAR), says<\/a>:<\/span><\/p>\n

\n

\u201cHomeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.\u201d <\/em><\/p>\n<\/blockquote>\n

Here are just a few reasons why, if you\u2019re looking to increase your financial stability, homeownership is a worthwhile goal.<\/p>\n

Owning a Home Is a Building Block for Financial Success<\/strong><\/h4>\n

A recent NAR report<\/a> details several homeownership trends and statistics, including the difference in net worth between homeowners and renters<\/a>. It finds:<\/p>\n

\u201c. . . the net worth of a homeowner was about $300,000 while that of a renter\u2019s was $8,000 in 2021<\/strong>.\u201d<\/em><\/p>\n

To put that into perspective, the average homeowner\u2019s net worth is roughly 40 times that of a renter<\/strong> (see visual below):<\/em><\/p>\n

\"A<\/a><\/p>\n

The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.<\/p>\n

Equity Gains Can Substantially Boost a Homeowner\u2019s Net Worth<\/strong><\/h4>\n

The net worth gap between owners and renters exists in large part because homeowners build equity<\/a>. As a homeowner, your equity grows as your home appreciates<\/a> in value and you make your mortgage payments each month.<\/p>\n

In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you\u2019ve built up comes back to you. As a <\/strong>renter<\/strong><\/a>, you\u2019ll never see a return on the money you pay out in rent every month.<\/strong><\/p>\n

To sum it up, NAR says it simply<\/a>:<\/p>\n

\n

\u201cHomeownership has always been an important way to build wealth.\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

The gap between a homeowner\u2019s net worth and a renter\u2019s shows how truly foundational homeownership is to wealth-building. If you\u2019re ready to start on your journey to homeownership, let\u2019s connect today.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"AThe link between financial security and homeownership is especially important today as inflation rises.\u00a0 But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says: \u201cHomeownership is rewarding in so many ways and can serve [\u2026]<\/div>\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":[3,88,84,86,125],"tags":[],"class_list":["post-7686","post","type-post","status-publish","format-standard","hentry","category-blog","category-first-time-home-buyers","category-for-buyers","category-housing-market-updates","category-rent-vs-buy"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7686","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=7686"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7686\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}