Building Your Net Worth- The Importance of Home Ownership

Dated: 10/09/2019

Views: 100

The most important route to wealth isn't through purchasing CDs or stocks or even building your savings account. Economist Jonathan Eggleston and Survey Statistician Donald Hays, both of the U.S. Census Bureau, reported the biggest determinants of wealth,

“The biggest determinants of household wealth [are] owning a home and having a retirement account.” (Shown in the graph below):

Homeownership is the Top Contributor to Your Net Worth | MyKCMThis is not surprising. Homeownership can help you to increase your family’s wealth. This study reinforces this,

 “Net worth is an important indicator of economic well-being and provides insights into a household’s economic health.”

Having equity in your home can help your family build substantial financial growth. Accordingly, people are not only building net worth in the homes they own, but also earning equity in rental property investments too. (See below):Homeownership is the Top Contributor to Your Net Worth | MyKCMJohn Paulson said it best,

If you don’t own a home, buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”

In Short

Owning a home is one of the most important ways to build wealth. While there are both financial and non-financial benefits to owning rather than renting your home. It is almost always better to direct your monthly housing payment toward developing your own net worth rather than your landlord's. Let’s get together so you can learn all the benefits of becoming a homeowner

Blog author image

Andrea Semanko

As a northwest native, I have a great understanding of Skagit, Island and Snohomish Counties as to their character and growth potential. Drawing on my personal knowledge of schools, recreational facil....

Latest Blog Posts

NAR's Exisitng-Home Sales Report Highlights Favorable Time for Home Sellers

In any market, the best time to sell would be when demand for that item increases and the supply of that item lowers. The current Existing-Home Sales Report shared by the 

Read More

Building Your Net Worth- The Importance of Home Ownership

The most important route to wealth isn't through purchasing CDs or stocks or even building your savings account. Economist Jonathan Eggleston and Survey Statistician Donald Hays, both

Read More

Your FICO Score Might Be Good Enough to Qualify for a Mortgage- Might Want to Check!

According to CNBC, the average national FICO® score topped it's highest point of 706.  This is excellent news for buyers.  Your current score might be high enought to

Read More

Now Might Be the Best Time to Use Your Equity to Move up to the Home of Your Dreams

According to the current market trend this a great time to move up to the home of your dreams and to use your equity as a way to make that happen! Let's have a conversation about the amount of

Read More