Carl Richards sketch
[dropcap character=”H” color=”green”]Homeownership is how many American families begin to accumulate wealth, according to studies by the National Association of REALTORS? and the U.S. Federal Reserve Board.
Whether you’re looking buy a home or checking out the local real estate agents for rent arlington toronto. You will know that Buying a home should be approached as a long-term investment, providing a build-up of equity over time and considerable tax advantages. Housing is not a quick-in, quick-out investment. When purchased for the long term, housing is one of the safest investments consumers can make. No paper investment provides this kind of benefit. It is so important to build up your wealth in ways like this so that you’re prepared for the challenges life can throw at you. There are even companies that specialise in wealth management jacksonville fl way, as well as in many other areas, that can help you to come up with a strategy on how to make sure you are always financially secure.
The key factor when it comes to property investment, of course, is purchasing a home you can afford. In almost every neighborhood we have seen the effects of purchasing a home beyond the buyer’s means and selecting an unsavory mortgage lender/broker. I’m sure that we all know someone personally who has gone through a foreclosure or short sale in the past three years. Being able to “afford” a home mortgage doesn’t just mean that you can make the monthly payment. Do you have an emergency fund to cover living expenses in case you lose employment? You need to have funds available to pay your mortgage while searching for new employment. What if the furnace unexpectedly breaks down? or a fallen tree causes damage to the roof? These “unexpected” expenses are to be EXPECTED and financially planned for. Homeownership is more expensive than your monthly mortgage payment.
With that being said, if your finances are in place then homeownership is a tremendous investment. Dollar for dollar, the rate of return on an individual’s cash down payment on a house is substantial. Homebuyers typically use their own money to cover only a small portion of the purchase price, but the home appreciation they realize is based on the total value of the property.
Homeowners accumulate significantly more wealth than renters. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a renter household is $4,800, while the median net wealth of a homeowner household is $171,700. Clearly, owning a home is the best way for most families to build a nest egg.
We encourage you to explore homeownership! Whether that be by finding your dream home that’s for sale or having a Custom Home Builder build your dream home for you, it’s an exciting and important step forward. A lot of people have been considering the later option recently. With the increasing prices of homes these days, some people feel that it’s more beneficial to build their own house to try and save some money. If you’re leaning more towards this option, it might be worth looking at a company like Danmar Homes for some inspiration and advice before building your home. Regardless of what you decide to do, you can start the journey today by getting your financial house in order. Very soon you could be the proud owner of a comfortable home to live in and confident with your sound investment.