Owning Real Estate can build wealth in so many ways. While renters will inquire difficulties in building wealth, owing an asset, like Real Estate has proven time and time again that a person’s net worth will increase.
Compare this to the typical homeowner, who in 1998 had a net worth of about $175K. In 2001 and 2004, that number held strong at slightly above $200K. In 2007, that number went up an impressive $250K.
Even with the down turn that properties values faced in 2010, median net worth of owners in 2010 was approximately $180K. Using this data, the median net worth of homeowners was 36 times greater than the net worth of those who are renters.
Rent will Increase
You will find that rents will keep up with inflation. Landlords will experience increased costs like rises in taxes or operating expenses, which they will pass on this expense to their renters. And the big kicker is…renters pay down their landlord’s mortgages.
With a fully amortized loan on a home, homeowner will create wealth each month as they reduce their principal…it’s like having an automatic savings program set up.
Homeownership is more affordable today than it has been in the past 30 years.
With the ability to deduct your interest on your taxes this will reduce the income tax liability. This will open up more take home money from each pay check or will help increase your tax return.
The Time Is Now
At the time of writing this blog…this is the perfect time to purchase real estate and become a homeowner. Values of homes are just starting to increase in most area across the country, creating equity and wealth quickly. On top of this….with the interest rates being has low as they are, you will not find borrowing money any cheaper than they are today.
Other than the financial advantage that homeownership has, it will also contribute to enhance civic pride, increase personal happiness, reduce crime and provide a better familial environment.
Get Started and Take Action
So stop paying your landlord mortgage for them and helping them get wealthier and start helping you become wealthier through owning real estate. I promise you, you won’t regret it.
It is easy to get started, just contact a local Real Estate Agent or Mortgage professional and they will assist you in this process.
Todd Rodocker specializes with first time home buyers, seasoned buyers and investors. He can be contacted firstname.lastname@example.org, cell 801-694-0903 or by visiting his web sites www.utahrealestatestore.com www.UtahHomes.kwrealty.com