WHAT IS THE #1 FINANCIAL BENEFIT TO HOMEOWNERSHIP?
Owning a home has many different benefits! That’s why it has been the American dream for so long. Let’s break it down.
The number one benefit to owning a home is the ability to build wealth through the creation of equity over time.
When you purchase a home, over time your equity increases. Equity is the difference between what you could sell the house for at that moment vs. what you owe on the loan. For example, if you owe 200k on the house, and it could sell for 300k, then you have 100k in equity.
I want to share with you some eye opening numbers from a study recently completed by CoreLogic. This study reveals the surge in wealth created from homeownership in 2020. Check out some of these highlights:
- 38% of homes are completely mortgage free; owned outright
- Average equity gained over 12 months was $26,300
- Average equity of mortgaged homes was over $200k
- There was a 16.2% increase in total homeowner equity
- Total homeowner equity reached over $1.5 Trillion
I don’t know about you, but those numbers are mind blowing to me! Real estate is historically an appreciating asset, unlike a car, so it’s no surprise how much wealth is being created through homeownership.
PROS & CONS
Owning a home does have its pros and cons like everything else.
Be sure to check out a video and blog we published for a full break down on what it really costs to own a home in Houston.
Real estate is an appreciating asset and builds wealth through equity and creates a positive impact on communities and their families. Achieving homeownership has been and will always be the American dream. If you are ready to pursue a home, give our team a shout. We are always here to help!