Increase Your Family’s Net Worth With a Home
The Federal Reserve conducts a Survey of Consumer Finances every three years, collecting data across all economic and social groups. Their latest survey data covers 2013-2016.
This study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. Also, the median net worth of renters decreased by 5% ($5,200 today vs $5,500 in 2013).
It’s simple math! The numbers show that the net worth of a homeowner is more than 44 times greater than that of a renter.
Owning a home is an excellent way to build family wealth.
Homeownership is a form of ‘forced savings.’ Every month when you pay your mortgage, you are contributing to your net worth by increasing the equity in your home. Additionally, if home values are increasing, you get that benefit of increasing the equity by doing nothing else!
Example: In September the average home sales price in Collin County increased 2.6% over year-to-date 2018*. Following that example, if you bought a home for $250,000 one year ago, the expected appreciation could be $6,500 – and that’s just one year!
Gallup reported that Americans picked real estate as the best long-term investment for the sixth year in a row. According to the most recent results, 35% of Americans chose real estate. Stocks came in second at 27%, followed by savings accounts and gold.
Say Goodbye to the Landlord
If you want to find out how you can take advantage and increase your family’s wealth with homeownership, let’s get together to – we can help you through the process. You may be closer than you think!
Norma Wall, Broker, North Point Realty
* North Texas Information Systems, the MLS system aggreator for North Central Texas.