{"id":9298,"date":"2023-10-12T06:30:00","date_gmt":"2023-10-12T10:30:00","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=9298"},"modified":"2023-10-12T06:30:00","modified_gmt":"2023-10-12T10:30:00","slug":"growing-your-net-worth-with-homeownership","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=9298","title":{"rendered":"Growing Your Net Worth with Homeownership"},"content":{"rendered":"
\"Growing<\/p>\n

Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership<\/a> a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.<\/p>\n

One of the many reasons to buy a home<\/a> is that it\u2019s a great way to build wealth and gain financial stability. That\u2019s because the value of most homes increases over time, which in turn grows your net worth<\/a>. Here\u2019s how home values are rising right now. According<\/a> to Zillow<\/em>:<\/p>\n

\u201cThe total value of the U.S. housing market \u2013 the sum of Zillow\u2019s estimated value for every U.S. home \u2013 is now slightly less than $52 trillion, <\/em>which is $1.1 trillion higher than the previous peak reached last June<\/em><\/strong>.\u201d<\/em><\/p><\/blockquote>\n

Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise<\/a> across the nation, now might be a good time to consider if owning a home<\/a> is something you want to reach for.<\/p>\n

Here\u2019s a look at some data to see how much owning a home can really make a difference in your life.<\/p>\n

Household Net Worth Is Rising <\/strong><\/h4>\n

Data<\/a> shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below<\/em>):<\/p>\n

\u00a0<\/a><\/p>\n

<\/p>\n

For many of those people, the rising value<\/a> of their home plays a big part in that.<\/p>\n

Owning a Home Helps You Achieve Financial Success<\/strong><\/h4>\n

You can tell homeownership had a lot to do with that growth because there\u2019s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors<\/em> (NAR), says<\/a>:<\/p>\n

\u00a0\u201c. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that <\/em>helps homeowners build a net worth about 40 times higher than that of a renter<\/em><\/strong>.\u201d<\/em><\/p><\/blockquote>\n

The big reason why? Homeowner\u2019s build equity<\/a>. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that\u2019s the largest contributor to their net worth. Here\u2019s the data<\/a> from First American<\/em> to prove it (see graph below<\/em>):<\/p>\n

<\/a><\/p>\n

<\/p>\n

The blue portion of each bar represents housing as a portion of net worth \u2013 and it\u2019s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household\u2019s wealth than anything else.<\/p>\n

Bottom Line<\/h3>\n

One of the biggest benefits of owning a home is that it can provide an avenue to grow your net worth. Connect with a local real estate professional so you can <\/span>start<\/a> investing in homeownership.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\"Growing<\/p>\n

Take a moment to imagine where you want to be in a few years.<\/p>\n<\/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":[3,134,84,125],"tags":[],"class_list":["post-9298","post","type-post","status-publish","format-standard","hentry","category-blog","category-buying-myths","category-for-buyers","category-rent-vs-buy"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/9298","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=9298"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/9298\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}