{"id":8091,"date":"2022-09-06T06:00:53","date_gmt":"2022-09-06T10:00:53","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8091"},"modified":"2022-09-06T06:00:53","modified_gmt":"2022-09-06T10:00:53","slug":"how-owning-a-home-builds-your-net-worth","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8091","title":{"rendered":"How Owning a Home Builds Your Net Worth"},"content":{"rendered":"
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\"How<\/p>\n

Owning a home<\/a> is a major financial milestone and an achievement to take pride in. One major reason: the equity<\/a> you build as a homeowner gives your net worth a big boost. And with high inflation<\/a> right now, the link between owning your home and building your wealth is especially important.<\/span><\/p>\n

If you\u2019re looking to increase your financial security, here\u2019s why now could be a good time to start on your journey toward homeownership<\/a>.<\/p>\n

Owning a Home Is a Key Ingredient for Financial Success<\/strong><\/h4>\n

A report<\/a> from the National Association of Realtors <\/em>(NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. <\/em>It finds:<\/p>\n

\n

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

To put that into perspective, the average homeowner\u2019s net worth is roughly 40 times that of a renter\u2019s<\/strong>. This difference shows owning a home is a key step in achieving financial success.<\/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. When you own a home, your equity grows as your home appreciates in value<\/a> and you make your mortgage payments each month. As a renter<\/a>, you don\u2019t have that same opportunity. A recent article from CNET<\/em> explains<\/a>:<\/p>\n

\n

\u201cHomeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you\u2019re building equity in your home<\/strong> . . .<\/em> When you rent, you aren\u2019t investing in your financial future the same way you are when you\u2019re paying off a mortgage.\u201d<\/em><\/p>\n<\/blockquote>\n

But on top of that, your home equity grows even more as your home appreciates<\/a> in value over time. That has a major impact on the wealth you build, as a recent article from Bankrate<\/em> notes<\/a>:<\/p>\n

\n

\u201cBuilding home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down<\/strong><\/em>.\u201d<\/p>\n<\/blockquote>\n

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

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

Owning a home is an important part of building your net worth. 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":"

\"HowOwning a home is a major financial milestone and an achievement to take pride in. One major reason: the equity you build as a homeowner gives your net worth a big boost. And with high inflation right now, the link between owning your home and building your wealth is especially important. If you\u2019re looking to [\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],"tags":[],"class_list":["post-8091","post","type-post","status-publish","format-standard","hentry","category-blog","category-first-time-home-buyers","category-for-buyers"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8091","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=8091"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8091\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}