Unlocking Financial Power: The Homeownership Advantage
Amidst the constant buzz surrounding home prices and increasing mortgage rates, you might find yourself questioning the wisdom of investing in homeownership at this moment. However, the results of a recent Gallup poll suggest that the answer is a resounding yes. Surprisingly, real estate has been voted as the premier long-term investment for the eleventh consecutive year, consistently surpassing other investment options like gold, stocks, and bonds, as illustrated in the accompanying graph.
graph source: source: keeping current matters ® real estate blog, gallup
If you are contemplating the prospect of purchasing a home, let this poll serve as reassurance. Despite the current state of affairs, Americans continue to acknowledge that owning a home is a significant financial decision.
What prompts this unwavering optimism among Americans when it comes to investing in real estate? Historically, buying property has proven to be a reliable long-term strategy for accumulating wealth in the United States. Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), explains:
". . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often regarded as a mandatory savings account that enables homeowners to accumulate a net worth approximately 40 times greater than that of a renter."
This is due to the fact that homeownership increases your net worth over time through the appreciation of your property's value and the gradual repayment of your mortgage. As building this wealth requires time, it is prudent to begin the journey as early as possible. By delaying the purchase and continuing to rent, you miss out on the opportunity for your monthly housing payments to contribute to your home equity.
In conclusion, buying a home is an influential decision, and it comes as no surprise that many individuals consider real estate to be the ultimate long-term investment. If you are ready to embark on your own path to homeownership, don't hesitate to reach out to a local real estate advisor today.