Financial net worth comparison, according to the U.S. Federal Reserve Board of Consumer Finance:
Average net worth of renters = $4,000
Average net worth of home owners = $184,400
A home is the largest financial asset most people have due to equity and appreciation over time.
Average annual appreciation rate nationally is 4 to 6 percent since 1977. (Note: Local appreciation rates vary greatly.)
At 3% annual appreciation, a home purchased for $150,000 would grow to $364,000 in 30 years.
Even at 1.5% annual appreciation, this same home would still grow from $150,000 to $234,462 in 30 years.
Buying your first home is an emotional decision—“Home is where the heart is.”
A home represents your personal tastes and provides a haven of stability and security for both you and your loved ones.
Provides a pride of home ownership, because it’s yours.
It’s also a rational decision—“Home is where your wealth is.”
Grow wealth via equity buildup, debt pay down, and value appreciation.
In the United States, you can take advantage of tax-deductible benefits such as property and mortgage interest write-offs.
A home is an “accidental” investment that creates leverage opportunities.
Examples:
In a few years, you can use your equity to trade up to a better home.
Or, you might consider using some of your home equity to invest in a rental property or a second home.
If you would like a free copy of the book Your First Home, You can set up a free – no-obligation Northern Virginia home buying consultation at our office with The Earl of Real Estate Team.
We have developed an award winning Buying Success System that has helped hundreds of home buyers over the past 10 years.
The Earl of Real Estate™ Team
Keller Williams Realty
Phone: 571-926-9230
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