The Elliott Homes Blog
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The Truth About Building Your Net Worth With A Home
Homeownership is a huge financial milestone and an achievement to be proud of. One excellent reason: the equity you build as a new homeowner can supercharge your net worth. With today’s inflation hike, the link between owning your home and adding to your wealth is essential.
If increasing your financial security is on your mind, it could be a great time to start investing in a brand-new Elliott Home.
Owning a Home Is a Significant Step Toward Financial Success
In a report from the National Association of Realtors (NAR), you will find several trends, including a substantial difference in the net worth of a homeowner vs. a renter:
“. . . the net worth of a homeowner was about $300,000 while that of a renter was $8,000 in 2021.”
The average homeowner’s net worth is approximately 40 times more than a renter’s. This difference shows that owning a home is critical in garnering financial success.
Equity Gains Can Substantially Help Fight Inflation and Increase a Homeowner’s Net Worth
The primary reason for the net worth gap between owners and renters is that homeowners build equity. When you own a home, your home appreciates, and you build equity as you make your monthly mortgage payments. While renting, you’re essentially building another’s financial wealth. A CNET article explains it best:
“Homeownership is still considered one of the most reliable ways to build wealth. You’re building equity in your home when you make monthly mortgage payments. When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”
Another significant impact on the wealth you build, your home equity continues to climb as your home value appreciates over time. An article from Bankrate states:
“A home is one of the only assets with the potential to appreciate in value, as you pay it down.”
When you own your new home on the MS Gulf Coast and beyond, your mortgage payment acts as a forced savings account, increasing in value as your home does. You receive any equity built when you sell. A renter will never see a return on the money paid towards rent every month.
In Conclusion – Owning a home is integral to building your net worth. View our website to see our AVAILABLE HOMES on the MS Gulf Coast and start building your net worth. For more ideas, check out this article on Bankrate.com: