Building Your Net Worth- The Importance of Home Ownership

Dated: 10/09/2019

Views: 116

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

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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....

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